Definitely still read to her. We read to our children, and the eldest is 9.5! He loves that time with us.
And if she is a struggling reader, reading her books beyond what she can read is improving her vocabulary and imagination - if you made her read books on "her level" she wouldn't be exposing herself to more sophisticated plots, great language etc.
And to take heart, my DD last year was Yr 2 and reading similar level books - partly because she wanted to finish them in one sitting, didn't like to leave them mid way.
She was given a beautiful, big Usborne Book of short stories (for girls, I think). The combination of the beautiful illustrations and the short stories suddenly gave her the confidence to tackle "big" books with chapters etc. She could finish a story (thus not leaving the plot half way), but made her realise she could read bigger books. Since then her reading has accelerated and she's now reading Michael Murpurgo (?sp) and lots of chapter books on her own.
So give her some time to build her confidence - maybe borrow some short story books from the library, or find something great on a topic she is really taken by at the moment (animals, fairies, magic, boarding school!). That might be the leap she needs to becoming a free reader.
But still read to her, knowing extra words, listening to interesting language and hearing sophisticated plots is still really, really important to her. And it's nice bonding time for you both.