Im a strong believer in combining phonics with sight words.... Sight words alone did not work for my son. He recognizes the words we went through as a baby (hes now 4) ... however if we didnt go over a word he cant just figure it out... he currently can read simple dick and jane books...
Chin up. Make learning fun and keep doing what feels right and fun. Drilling doesnt sound fun. The word turned me off right away
Play and learn together. Your efforts show that a learning environment is special to your family. That will be the biggest play in having your child learn. There are many different ways of learning and teaching... everyone is unique and your teaching style may have to be adapted for eah child.
Sooner or later you will see the beautiful sculpted individual that your are helping to mold and trust me theres not a doubt in my mind that one day you will be convienced she is the smartest kid in the world
Keep smiling
MQ