Word Wizard by Cathryn Falwell*

While Anna is eating her alphabet cereal she spells the word "dawn" and then rearranges the letters to create the word "wand".  So with her "magic" wooden spoon she and a boy rearrange letters to make new words.
A great book for word play.
After reading this book, have magnetic letters or letters typed on card stock available to make the words found in this book.
Ms. Falwell suggests at the end how to make learning letters fun.
All the illustrations are from cut paper collage.
*Highly recommend.