Singing Away the Dark by Caroline Woodward and illustrated by Julie Morstad
Pussycat, Pussycat, Where Have You Been? by Dan Bar-el and illustrated by Rae Mate
The Cybils is a great program that advocates rewarding books that combine literary merit and kid appeal. (As they say, they like books that are both "yummy and nutritious"!) They also are run by children's literature bloggers and help foster a sense of community among children's lit bloggers. Yay!
More about the Cybils here.