Hi C.!
I am also a returning student trying to juggle my own homework and my child's. He is in secong grade, and has always been passionate about books. He would toss a book in my lap the moment I sat down before he could really talk, yet sometimes he gets frustrated reading too. He is a really good reader for his age, yet he wants instant recognition of the word! I show him some of the words in my science books, and tell him, "See, there are even words that Mommy has never seen before! Help me sound it out!" I think if you take your time (sometimes hard to do when life is as busy as ours!) and allow her to look at the word a moment, then put your finger over it in sections. The word picnic looks strange when you're learning to read, but pic is easy, then nic. When he was in first grade, I showed my son the word "nevertheless," and he was so amazed at how easy it was in sections! Believe me, if you remain patient and get lots of books that she enjoys (having fun with it is the key!) she'll get it, and she'll love the world that opens to her when she can read easily.
Another tip several moms and I share: if laying in bed and reading to her at night has always been your thing, don't change that. She still wants to be your little girl and know that mommy will still read her a bedtime story!
Find a favorite author and have fun!
-H.