This video suggests that when teaching children with dyslexia how to read, it is better to generate your own books. Regular books have too many unknown words. Here is how to make your own books:

1. Fold 3-4 regular 8.5×11 sheets of paper in half.
2. Staple along the fold.
3. Draw silly pictures and write in sentences on the pages.

Guessing can be difficult for dyslexic children. Only use words the child knows, but use enough variation to prevent them from guessing.