I often catch her in the wee hours of the morning with books on her bed, which she has devoured before our acceptable wake time.

At what point do I move from phonics work to actual emerging readers? I just asked a question in another thread viewtopic.php?f=6&t=10737&start=15#p78273 about what to do with Storytime based on our current pace, and have been meaning to ask this question too.
She really likes ETC Online, but I just wonder what to do and how soon. There are 8 "books" to go through online, and she is partway through book 4.