An oxymoron, right? Well, I thought I'd toss out what has been working for us. (Course with a toddler, that means it will probably stop working tonight and then we'll have to try some new tactic!)
We often base what we "study" as a family on what Laurel learned in nursery the prior week. For example, one Sunday they focused on temples, so we did our FHE lesson on when Jesus went to the temple to teach about Heavenly Father and his mommy and daddy came to find him. All concepts that she could grasp. Then for the rest of the week we just retold the story each night - little ones love repetition and she really loved hearing about Jesus and the temple each night.
It takes a bit of work to think of stories that she can grasp. We did Jesus riding the donkey into Jerusalem "a big city" last night, and today Luke's talking about the angel giving Alma a time-out and that Alma talked to Jesus and became a nice man.
Any other fabulous ideas out there? A parent needs all the help they can get!