The Chanukkah Guest by Eric A. Kimmel is a personal favorite. This silly story of a bear who is mistaken for a dinner guest provides great opportunities for dramatic reading and overacting.
The Borrowed Hanukkah Latkes by Linda Glaser is a charming tale of sharing and bringing family and friends together.
D is for Dreidel by Tanya Lee Stone is an alphabet book celebrating many themes and symbols of Hanukkah. (Okay, X is tough, so we'll forgive the author for using "Xylophone.")
Sammy Spider's First Hanukkah by Sylvia A. Rouss is a great preschool story about a spider exploring the meaning of the holiday and--bonus--colors and numbers, too!
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Special thanks to Lisa Ginns for these suggestions, and--no--there is no one correct way to spell the word Hah-noo-kah in English.