We also practice reading bilingual children's books. Then we discuss points of grammar or phonics or whatever the story brings out. Usually the students have questions about the language that lead to mini-lessons. My classes are extremely multi-level, and I try to make it possible for everyone to learn something from each lesson. Some students are only ready to learn a few new words, while others want to learn the finer points of proper English grammar.
Stories help to link it all together.
Each has benefits and shortcomings. Those are my two cents.