Go to a Mardel's (usually located near a Hobby Lobby) or any other similar store that has teaching supplies. Spend a little time looking through their materials and buy a couple of pre-reading books that emphasize phonics. That gets you started for about ten to twenty bucks without committing to an expensive set of CDs etc. You will get ideas from the books on how to do phonics on your own ... rhyming words, etc. The teacher's advice is good ... read, read, read to her. Begin to point out the letters as well as the pictures. Point out words that are the same but start with different letters so have different sounds ... cat, bat, rat
Now,Encouragement for you: Because she is interested in learning to read, you are already doing the right things for her ... keep at it and she will learn. Enhance in all of the ways suggested by responders. Get the Hooked on Phonics if you choose ... it is a good, reliable program and works. Meanwhile, you are doing fine on your own ... and so is she!
Blessings from Grandma GiGi,
a retired nursery school teacher