The best way to learn to read books is to read simple books to your daughter while you point to the text. Then you can ask her to read some books to you. There are many words that are learned during reading time that do not need to be learned on flash cards. I would recommend teaching her some common sight words from flash cards to help her read easy books. I don't think Your Baby Can Read has sight word flash cards. You can check out the MonkiSee Sight Words Flash Cards at
http://www.monkisee.com/sight-words-flash-cards.html. You can scroll down to the bottom of the page on that website and see how you can play some games to get your daughter reading sentences. This is good practice for reading books.
I really like Little Bear books as first readers. The sentences are very short and simple. We also used a lot of the Maisy books. They have one to two sentences per page in fairly large font, so these are good to start with also. Try to find books at your library that have larger fonts and are fairly simple to begin with. You can also have her help you read. When you see words she knows in the books you are reading point to them and ask her to say them. You can also take turns reading a page each.
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