Hi, Maria! Definitely follow her lead! She's ready! Everyone has one's own process, but here are the steps I took w/ my DD.
1. Reading to her. I would choose a simple word (like "he") for her to memorize and read each time it came up in the text.
2. Phonics. Letter of the Week ( http://www.letteroftheweek.com/ ) I started with the letter curricula, starting with A ( http://www.letteroftheweek.com/letterA.html ). Did some of the steps, but mostly just reviewed the phonetic sound and printed pictures from the Internet of things mentioned in the curricula (usually from the science section). So this is where my DD really started grasping phonics. We didn't even get through the alphabet, and she just grasped the rest by asking questions. Then we were off to step two.
3. Starfall.com helped her independently (with the computer's help) work on her phonics and reading.
4. A friend gave us the ABeka readers. Simple books with simple words (paper format). Before we knew it, she was reading the simple words and beginning to tackle bigger ones.
5. We just found these free downloadable readers: http://www.readinga-z.com/newfiles/tour/tour7.php . Haven't tried them much yet, but DD is excited about them. (Paper format--print on your own.)
I know this isn't exactly what you were looking for, but I hope you can use some of the info! You're in for a fun ride!
Emily