You will need to plan out your dialog together in advance, as well as practice together before telling the story to the children. First, it should get attention and hold interest .
Children love to listen into dialog.
Using puppets to generate appropriate feedback is one way of helping the children grasp difficult concepts and clarifying applications. You will probably have to make the puppet using cardboard and foam. Visualize a book laying sideways, spine away from you. A hand would need to fit in it. The puppet's language and behavior should be consistent if it is to become believable.