When I was a young child I remember my dad reading me stories from The Children's Bible before bedtime. Sometime between Katherine's first and second birthday I began reading to her from The Rhyme Bible Storybook for Toddlers by L.J. Sattgast. We read it so much that she could recite each story and turn the pages at the right place almost like she were reading the stories for herself. She and I loved it, but she eventually out grew that book.
For Easter 2007 Katherine and Sebastian received The Jesus Storybook Bible, written by Sally-Lloyd Jones and illustrated by Jago, from their Grandma, Linda Kenney. Since that day our family has loved reading from that book. (Wes tells about the book here & here.)
Here, from that book, is the telling of the Christmas story: