Oral blending as a game? Ask her to stroke the c-a-t (or the d-o-g)or some other task, can she blend those sounds together and get the right word? Lots of praise and cuddles if she can. This is really just to check if she can blend. If you know that she can, do as much as possible subsequently with letters
Card games; cards with a simple word on one side (obviously using the letter/sound correspondences that she knows)and a picture of it on the other; she reads the word, turns it over to confirm with the picture if she is correct, she keeps the card if she is, you do the same (prize for the winner, so make sure you lose!)
A friend of mine uses a puppet which the children help to read the word correctly...
Get her to 'help' you to spell words using the letter/sounds she knows; once spelled they have to be read to check that they are correct.
I'm not brilliant at this, it's just an idea or two to get you started.
Make sure she is using 'pure' sounds, no /uh/ on the ends of consonants. The /uh/s distort the sounds and make it difficult for the child to recognise the word they are trying to blend.
Please don't worry about this too much, just have lots of fun practice - don't push whole books too much, it will be too much for her at first; simple two or three word phrases will be fine when you think she'd be happy with them.
She'll get there. I work in with poor readers in KS3 and I have never met a child who can't blend