We've been doing lots of story telling with Lily lately and she loves it. Some of the story telling is done with props, some are old classics like Three Little Pigs and some stories are just freestyle.
Our freestyle story telling could involve what we did during the day or what we might do tomorrow. Most of the stories start "Once upon a time, there was a little girl named Lily." Sometimes we follow it up with "She was a good little monkey, but also very curious." Then Lily replies, "I'm not a monkey, that's Curious George."
Lily has now started saying she will tell a story too. Her story starts "Once upon a time there was a little girl named Princess Lily. She loved to dance and play toys." Then she says to us, "Then what happens? You tell my story."