Hi there changer - I wrote this for a friend with a seven-year old daughter - hope there are some ideas in here that might work for your daughter.
The book I remember most clearly from being 7/8 years old is Muriel Denison?s Susannah of the Mounties. I found a copy in the rented house we lived in when we first moved to London and I loved it and read it over and over again.
Elizabeth Goudge: The LIttle White Horse and Henrietta's House
Laura Ingalls Wilder: Little House in the Big Woods (and all the others)
Joan Aiken: The Wolves of Willoughby Chase, Black Hearts in Battersea, Night Birds on Nantucket; there are several more of these books which are a linked series and are now collectively known as the Wolves Chronicles
Arabel's Raven and the sequels
Collections of short stories - A Necklace of Raindrops etc
Diana Wynne Jones: The Ogre Downstairs was my favourite ? she was prolific!
Eve Garnett: The Family from One End Street and sequels
Monica Dickens: The House at World's End and sequels. Your daughter might also like MD's autobiographies - One Pair of Hands is the first - very lighthearted and easy to read.
John Masefield: The Midnight Folk and The Box of Delights. These might be rather hard going to read to herself but could be good for reading aloud.
Edward Eager: Half Magic and Magic by the Lake
E Nesbitt: Five Children and It, The Phoenix and The Carpet, The Treasureseekers, The Would-Be-Goods, The Railway Children
Mary Rodgers: Freaky Friday, A Billion for Boris
Rumer Godden: Miss Happiness and Miss Flower, The Dolls' House, Little Plum - there are several more but these were the ones that I liked.
Dodie Smith: The Hundred and One Dalmations, The Starlight Barking
Rosemary Sutchiffe: Warrior Scarlet
Roger Lancelyn Green: great retellings of the Greek and Roman legends, Viking sagas, Egyptian myths
Rudyard Kipling: Just So Stories
Catherine Storr: Clever Polly and the Stupid Wolf and sequels
Ursula Moray Williams: Adventures of the Little Wooden Horse (this is terribly sad but has a happy ending ? I used to cry and cry over it ? be warned!)
I also loved (and still love) autobiographies about authors? childhoods ? here are some I particularly liked at that age:
Diana Holman-Hunt: My Grandmothers and I
Eleanor Farjeon: A Nursery in the Nineties
Alison Uttley: The Country Child ? she also wrote the Little Grey Rabbit books which are delightful but might be a bit young for your daughter now.