I'm currently using a children's book series called the Quirkles.... It's great for phonics and it also introduces science concepts as well. It's a great way to teach phonics and sneak in science at the same time. I think the series is fairly new, I ordered mine off the website, it is the only place I've been able to find them so far... www.quirkles.com - my kids haven't been able to put them down since they arrived. Along with the phonemic focused stories there are two science experiments in the back of each book which are easy to do and don't require many materials (my kids really love getting to do this part after I read them the stories - it's hands on and they get to make things pop and fizz) - they just got to make there own volcano last night in the Vinnie Volcano book. They are 3 and 5 years old and going around talking about magma, density, and polymers! It is amazing how much we underestimate the minds of our kids.

The illustrations and characters are great, and I must say, have been pretty entertaining for myself as well - definitely worth checking into!