Came back to give some titles for readers we've used:
I See Sam or 3Rs (mentioned above)
Rod and Staff "Say it again" series (I still have these and I'd be happy to send them to you if you'd like)
Step into Reading First Steps (I have set 2 that I could send)
Horizon readers (not Horizons the school program) titles include "Fun in the Sun" "Scamp and Tramp" "Soft and White" and others; I think there were five in the set. I found mine years ago in a thrift store but I see that Memoria press has included these three titles in their Kindergarten Phonics set. These were nice because there are so many stories in each book.
Not reading books but easy activity books that supported fine motor skill development (son was pencil/scissor phobic for a long time!):
Kumon My First Book of Tracing, Cutting, Folding, Book of Easy Mazes
Rod and Staff "Early Learning Workbooks" (set of 5-6; works on tracing, circling, left/right, etc)
As I said, I used All About Spelling's phonogram cards (the cues are on the back of each card) but you could easily make your own or buy only the cards. I also checked out anything I could find in our library system (Reading Reflex, Phonics Pathways, etc.)
My son definitely picked up sight words along the way but it came after the phonics had started. I have not tested him recently but he is probably at least 4th grade reading level. He loved Henry and Mudge, Mr. Putter and Tabby, Poppleton, etc. Now can read Charlotte's Web, Shiloh and others and only make errors on the less common words. He loves to read. He also loves listening to audiobooks (classics and others).