There is a Sydney based bookshop/website (google gleebooks) that has greats lists of age appropriate kids books.

Milo got a few new ones for hie birthday and is getting some for christmas.
newbies include
each peach pear plum, going on a bear hunt, time for bed isobel, guess how much I love you, where is the green sheep

gosh It was like going back in time with some of them!
MIL got his Uno's Garden too.

One of the real standout favourites I have from childhood is a book called Corduroy about a little bear who has lost his button. I hope I can find that one for Milo.