I have also purchased some phonic readers and early reading books from starfall.com, if you are not familiar with starfall.com, it's a great site to early reading skills, letter and sound recognition, etc. Cole loves these books b/c they are familiar characters to him from the website. I will be using the webiste this year with my 2 year old, as for the most part Cole has 'outgrown' it. Though there are older kid features as well.
Here is our read aloud list from Sonlight (not all are pictured), and we plan to add others according to our unit studies.
The House at Pooh Corner (Pooh Original Edition)
My Father's Dragon: The Bestselling Children Story
The Light at Tern Rock (Puffin Newbery Library)
Starfall Learn to Read Phonics Book Set: Zac the Rat and Other Tales!