Year 1 teacher here. Don't worry- she is doing really well to recognise all of her sounds. She will get better at blending as she matures and gets more practise. I would not worry about a child in my class being at this stage at this time of the year.
Do lots of reading at home, both her reading and you. Keep reading fun and help her when she needs it. If you really are worried then make an appointment to talk to her teacher.
We had this. Our teacher advised not to worry, to keep practising, we had individual letter cards(home made) and kept assembling them into two or three letter words. Eventually it clicked, and we gradually move to 4 letters and then gave up the cards altogether.
Totally normal. My son is past this stage but is definitely a stage they all go through. I got a pack of RWI cards and used to put one card down at a time then see if he could slowly blend them into a word.