I suggest taking a trip to the local library. The children's area should have a section set aside for easy readers or beginning readers. They are often divided by grade level equivalency. When you look at the back cover, you will see numbers like 2.5 which means second grade, 5 month. This will help to guide you when selecting books. If she is struggling with books on her grade level, let her select books that are easier. This is ok. In fact studies have should that it isn't so much the level she is reading but the amount of time she spends reading.
there is also a five finger rule you can teach her. Select a book and have her read the first few pages. For every word she doesn't know or stumble over put up a finger. At the end of the page, if she has less than five fingers, the book should be fine. If she have more than five fingers, she may become frustrated and give up reading it. However, if it is a book she really wants to read, she will struggle through it one way or another. You could also read that type of book together.
Another idea is to look at the children's books on CD. Then pick up a copy of the book. She can listen while following along to the story.
Henry Winkler (The Fonz from Happy Days) has written a series called Hank Zipzer. Henry Winkler has dyslexia and wrote these stories based on his own experiences. They are written on a 4th grade level, so you will probably have to read them to her. But it is a great way for her to open up and not feel like she is alone.
Hope these ideas have sparked some of your own. Happy reading!