Here is a little gem of a chapter book we found at our last library trip - Mouse Tales by Arnold Lobel. The book has seven short stories about the adventures of little mice, and they read like old-fashioned folk tales. The stories are simple, with cute and colorful drawings on every page (and often interspersed among the text). The beginning of the book sets up the stories -- seven young mice are nestled in bed and their Papa will tell one story for each little mouse.
We are experimenting with lunchtime reading. On days when I am well-organized, the boys will sit at lunch and I will read to them. It works well, although if I hold the book so both boys can see the pictures, I end up reading upside down and/or sideways. Lunch reading is nice bonding and the boys seem to enjoy it too. It's a good opportunity for us to get more reading in besides bedtime.