Grace and I are big fans of the Mercy Watson series by Kate Dicamillo. It's a great fit for Grace because it's a chapter book, which she wants to be able to read, but it's also on her level. The words are spaced nicely and in a relatively large font, there are fun colorful illustrations on almost every page and most importantly, the story is really good! (I'm not a big fan of early readers where every word rhythms with cat and mat and doesn't actually tell a story).
When Grace came home and had been assigned to do her first "unconventional book report" we knew just what book to read. Fortunately our library had one that we had not read.
She had fun making her hand puppet and it turned out really cute.
She came up with the idea to use the milk lid for the pigs snout, I knew there was a reason I was saving all these crazy "craft" things!