Sarah O'Leary's book, When you were small is a beautifully illustrated story for kids. The story is cute too - did I mention how gorgeous the illustrations are? Available here.
And, The perils of magnificent love by Emma Magenta is one of my favourites. I bought it before I even had kids! It was just too gorgeous to go past. And from memory, I bought it at the Berkelouw in Paddington where Ms Magenta herself worked at the time... Since then, Emma has penned a collection of these cute stories about love in simple terms. Check it out and purchase your own here.