If you're looking for an annotated list of recommended books to read to your children DaddyRead is a great place to find it. The website has informational articles on how to read to your kids, but the heart of the site is annotated lists of books to read aloud to children separated by recommended ages. There are lists of picture books for infants through second grade. There are lists of recommended read-aloud chapter books for preschool through third grade and up. There's even a list of recommended chapter books for reluctant readers.
I started with the list of read-aloud chapter books for preschoolers and reserved five of the recommended books from our local library. We started Moongobble: Dragon of Doom today. Michael is loving it. It makes Ava a bit wiggly, but as long as she's allowed to wander the room a bit she follows along too. The chapters are short and have a couple of black and white illustrations per chapter. We've finished 5 of 13 chapters. The book is the first in a series so we'll know where to go next if the children enjoy this first one all the way through.