My daughter has been really enjoying making mini phonetic books from words she knows. We use card stock or previously painted watercolor pictures as the cover and unlined paper inside.
The books are small, only 4-5 inches, which makes them even more fun. Each book has about 5-7 words. Some of the words are written after she completes a set of language cards, as a reinforcement for the material, while others are words she thinks of and adds in. (And yes, most pages have those cute little hearts she loves making.)
The books are bound with a piece of yarn, a simple and nice alternative to staples. (I thread a large dull needle and poke it through the paper in two areas and tie a knot.)
Some books are illustrated with her drawings and others were made from looking through magazines to cut and paste.
I've found making and using the books helps build her confidence in reading and reading fluency. My daughter enjoys reading them to herself and to us and it's been great reading practice.