DD (2y10) has reliably known her letters and the corresponding sounds for about 12 months. She started recognising whole words about 6 months ago but over the past few weeks has strted to try and "read". She spells out words all the time and has now started to blend sounds e.g. "at", "un". I'm not sure whether we should encourage this as she is completely obsessed with doing this or should just ignore it. She does letterland stuff at nursery but I don't think this is where it has come from. Am loathe to mention this to teachers as I don't want to seem like pushy parent from hell (will live with being seen that way on the web though!)and suspect she'll start doing this at nursery anyway! We're also aware that her fine motor skills are nowhere near as advanced, e.g. has only been doing tadpole people for a couple of months, has no interest in tracing wavy lines, just draws a straight line through from first to last dot.
Any advice?