I tried her with those nonsense words and guess what she could only read the first 2, the rest she couldnt read at all. My son could read them all!
I think she has managed to hide this prroblem well because she has picked up a wide vocab from reading lots of stories and reads in context beautifully.
I would go with Yoyo's suggestion of using Reading Reflex (Carmen and Geoffrey McGuinness). It sounds to me like your daughter doesn't have a full knowledge of the English 'code'.
Reading Reflex uses a phonic system called 'Phono-Graphix' which is a beautifully simple method of teaching reading and spelling. It teaches that written English is a 'code' for the different sounds in spoken English.
The sounds in spoken English are represented by different 'sound pictures' (letters or groups of letters), and the same sound can be represented in a number of different ways. For example the sound /e/ (as in 'bed') can be represented by the 'sound pictures' 'e', (bed), 'ea' (head), 'ai' (said). They call this 'variation' in the code.
Phono-Graphix also teaches that the same 'sound picture' can represent different sounds. For example, the picture 'ea', can represent the sound you hear at the end of 'tea', in the middle of 'head' or in the middle of 'break'. They call this 'overlap' in the code.
Phono-Graphix teaches that to be able to handle this code you need to be able to (1) blend sounds together into words, (2) segment words into sounds, and (3) manipulate the sounds within words, (so that you can try out different sounds for 'pictures' where there is overlap).
The book Reading Reflex provides tests for each of the three skills mentioned, and for checking your child's code knowledge. It then provides a complete set of sequenced activities for you to work through to ensure that your child acquires both the skills and the knowledge necessary for efficient reading and writing. It does not teach the endless 'rules' that many phonics programmes teach. Few (no?) rules apply universally ('i before e except after c', 'when two vowels go walking the first does the talking'), and they are therefore largely useless or misleading; many are impossible to remember; and worst of all, they require and understanding of 'if...then...' logic which children simply can't apply.
Having had a long interest in education, I picked up Yoyo's suggestion of using Reading Reflex in an earlier thread. I have been using it with the children of two friends who have had reading/spelling problems. Neither boy's problem was identified by the school, except in one case, where the parent was told that the child had trouble hearing vowels in the middle of the word, and then the school proceeded to do nothing about it.
You may have a school that is pro-active, will help identify your child's problem, and will then do something about it. But my experience with the school my children attend/ed is that they actually have very little knowledge of how to deal with a child's reading problem. Neither of these boys could blend or segment, and they both had significant problems with the 'code'. For example, one of them could not sound out a simple word containing the letter 'l', because he thought that the sound it represented was 'ell' or 'lee'. (Teaching letter names at an early age has a lot to answer for... ) Yet the school had never spotted these absolutely fundamental failings in their skills and knowledge.
Make sure that whatever your school decides to do, you fully understand what that is and what problems it is targeting. I have been astounded that a school with the reputation of mine could be quite so useless in this area. Don't forget that primary teachers have often received very little training in how to teach reading, and the teaching of reading ceases very early on in primary schooling (about year 2). The methods by which spelling is taught seem to forget that writing is encoding of *sound*. Many spelling techniques seem to be entirely visual, but to spell effectively, you need to be able to break words into syllables and sounds, and sound out as you go, editing for the correct choice of 'picture'. You need to be able to say, should that /e/ sound be written 'ea', or 'e', or perhaps 'ai'?
Rant over. I can't bear to see how some of our children are failed by 'good' schools. Don't fail your daughter.