They will enjoy getting involved - copying your actions and singing along with you. In their second year you can start to show them letters and sounds. Make up extra bits. Your baby will like to give characters different names and be put in the story. Use the book to do the actions - let it fly, jump or hide.
Babies have a short attention span - sharing books helps.
Any kind - picture books, bath books, cloth books, board books, story books, magazines, catalogues, nursery rhymes. Go for bright colours and short texts. There are no rules - whatever you both enjoy. Talk to your baby - tell her what the picture is. Point out colours and shapes.