I've taken a more laid back approach with my second homeschooler when it comes to reading and doing lessons. I read a lot to her. She reads a little to me. We go through the phonics cards. And she does math worksheets. Then, of course she listens in are her sisters lessons.
It's amazing how much she catches on it. She'll ask to write something on the grocery list and try to sound it out according to the phonics rules (which as you know doesn't always make it right). Lately, she's been taken to "reading" her older sister's chapter books - which really amounts to looking at the illustrations, but also involves trying to decipher some tougher words. I'm so proud of her when she comes to me and reads to me a fairly difficult sentence that she obviously took a long time deciphering. That's the power of reading to your kids and igniting their own love for learning. It's an amazing thing to watch.