Lance Mannion posted some children's literature recommendations the other day. Check them out. I agree entirely with the ones there with which I am familiar.
In our household, the "Amelia Bedelia" books are always a hit with The Daughter, although I have a hard time reading them aloud because about the eighth time I have to say "Amelia Bedelia", my tongue starts to trip on the name -- and the name generally occurs at least once per page in each 60-page book. But they are funny -- the earlier ones, anyway. The more recent ones -- and it's blindingly obvious which ones these are -- are less so.
The Baranstain Bears are always a hit, too. Even the ones that deal with a "message" are decent, because they tend to do it without being annoyingly condescending. Curious George is also a good bet most of the time -- especially the alphabet one, because I'll bet that's the only children's book that uses the word "dromedary". And we also like Rosemary Wells's Max books a lot.
Of course, for ongoing recommendations on children's books, Will Duquette is the place to go. It's pretty funny when Will encounters a book he doesn't like; his verdict is always some variant of "They can read it when they grow up if they want to, but I am sure not reading that book ever again!" That kind of says it all, doesn't it?