I think the biggest problem for children learning to read with phonics is that English is not spelled phonetically a lot of the time.
This site:
http://www.spelling.hemscott.net/ has a lot of resources and reviews for both US and UK English.
Here is another good resource for UK English:
http://www.primaryresources.co.uk/english/englishA3.htmThe most important thing at the momant is to praise her effort. Tell her 'good try' but it is a silly word that has different letters to how it sounds when you write it down. Don't make a fuss about poor spelling, encouraging effort is more important at this stage, you don't want to put her off by making a big problem out of it.
One idea is to take the words she likes to write most (like wand or Sanju) and make a little 'reminder' flashcard that you use when writing, so she has the correct spelling to copy. Or make a big page with the word on that you have to decorate together (pink glitter on the word wand, etc.). Try and make it fun!