We have several hand musical insturments at home... what kind of music should my toddler be taught? Singings, dancing, how to play them?

My dd is 2.5 and in my eyes pretty smart.  Her vocabulary is very good.  She had talked in sentences for months and speaks like an adult.  She has LOVED since she was a tiny baby... we have always read to her. Last night I read to her for 45 min and I think we went through 12 books.  She can sing the alphabet and reconized some letters.  She can count to twenty and count on her hand and reconize some numbers.  I'm wanting to improved on all of this quite a bit.  Should I wait to try her on sight words after she really get all the other stuff down?  How to I go about teaching her to read???????????  Any tips?  LittleReader, Marshmellow math, starfall, abcMouse, LeapFrog videos or magnets?  As much as she loves to pretend to read and be read to I think she would love to learn to really read.