See and Spell Learning Toy by Melissa & Doug
This wooden puzzle set is fun and challenges children to become familiar with the letters of the alphabet and their sounds as they develop a sight-reading vocabulary and learn to spell. More than 60 colorful wooden letters fit into the eight two-sided cutout boards to spell three- and four-letter words. Since letters are colored differently, young children can practice colors and shapes identification with this toy as well. The letters can be used for lots of learning games and also for stenciling and printing practice that builds fine more skills.