I just picked up a copy of Let's Play Fairy Homes. It just came out last week.
This is exactly the kind of book my two year old niece enjoys. She likes to use her fingers to pry open windows and see the pictures behind them.
You can also slide panels at the end of some of the pages to see more fairy scenes.
The illustrations, by Yu-Hsuan Huang, are colorful and adorable. This board book, meant for babies under the age of three, has 12 pages.