To be honest though I think the joy of Lego is not that it comes with ready made characters and situations (although it does, especially now with all the movie tie-ins) ... But that it is completely modular and can be whatever you want it to be (as long as whatever you want it to be is a bit angular with a yellow face).
How old is your DD? The DK Lego books are good for building inspiration.
DD has recently started playing with Lego and I'm trying to put some character packs together for her for Christmas. I have bought little red riding hood, the wolf and even a woodcutter complete with axe but I can't find anything approaching a grandma. Anyone ever come across one?