Hello, my DD is nearly 3 and we've done Alfie, Meg&Mog, Tiger who came to Tea, Gruffalo, Olivia, Where the Wild Things Are etc etc etc to death. She's just starting to be able to concentrate on longer stories - The Enormous Crocodile was a massive hit and also an Usborne collection of heavily condensed classics like The Wizard of Oz (with lots of pictures still, of course).
But I'm not sure what else comes between straight picture books and proper chapter books. I would love to hear your suggestions! Thanks vv much in advance.