Ohhhhhhhh Sarah what a great topic, I have many many many favourite kids books and have a huge library of them ( I am a junior primary teacher) Tori is a big young for favs, but here are some of my favs that I read to her lots.

My Dad - Anothony Brown
Too Many Pears- Jackie French
Pete the Sheep- Jackie French ( love this book because DH is called Pete and he used to be a shearer)
Wilfred Gordon McDonald Partridge- Mem Fox (My all time fav)

I could go on and on but those were the ones that popped to mind immeditatley