My dd (7) was like this - she is still way ahead of her peers. I think I responded to her clear interest by building on what she recognised, in a fun + unstructured way. eg moving on from recognising her name to spotting other words beginning with the same letter. Before I knew it she was reading simple words/phrases at 3 and reading long books at 3-4 (eg Naughty Little Sister, Milly Molly mandy, poems etc.) Poetry is good as it reinforces the rhythms of language. I also made little signs on coloured card and blutacked them onto the appropriate object, eg "bed", "door". Shoot me down for hothousing if you like, but dd was voracious ! Later, once your dd can recognise quite a few words, you could get some magnetic letters and encourage her to spell out "cat", "dog" etc.
I wouldn't use a scheme, though flashcards can be fun. there are lots with pictures on too.
My ds3 is 2.5 and it looks like he's going the same way. adores books, shouts out letters and numbers from car registrations, can work out that if "b" is for "boy", "b" is for boat, big, boot, etc. i won't be using a scheme for him either.
By contrast, my ds1 and ds2 are/were bright as toddlers, but weren't really interested in reading so early. Ds1 was the last in his class to be given a "real" reading book, but when he was ready it clicked very fast and he rpidly overtook many of thr precociously early readres.
If your dd is doing this so early, she must be bright, but don't panic if there's a plateau or if children like my ds1 catch up and overtake !
Just enjoy her enthusiasm. Good luck to your clever dd.