Step 1: Letter Study
Write you chosen letters on colorful construction paper. Then go through the cards with your child. Talk about the name and sound of each letter. Try to elicit the name and sound of the letters after a few days. Each week add two or three letters to your letter cards.
If you're interested in teaching letters look here:
Step 2: Word Study
Cut construction paper into 8.5x5.5inch pieces. Write the following words on the cards with a marker: I, my, like, a, see, dad, mom, the, dog, is, go, here, said, to, & are.
Each week go over the word cards. Start with one card and then add two new cards each week. Talk about how to read the card and how to spell the card. When kids have a difficulty reading a word encourage them to say the sound of the first letter in the word--In kid "language" we say get your mouth read for the word.
Step 3: Reading
Predictable books can be bought through the internet and cost a dollar each. Understand that predictable books have levels. If your child is just starting out, start with beginning level books. As kids get better at reading move to more complex books. Look through the titles with you child and choose themes that appeal to them. Put the books in a basket with your child's name on it, so that your child can read their book when they want.
I usually read the first two pages and then have my students take over. Kids should read daily. Also kids should be read to daily.
Eventually kids will progress to less predictable texts. These less predictable texts will require a new set of skills that I'll talk about in my next instructable.