This works especially well with rhyming books. For example, "Oh! They would put me in the zoo, if they could see what I can____"
"Do!" exclaims your child.
If they aren't able to guess, just supply the word and move on. It's good to include some difficult pauses as well as easy ones to keep it challenging.
I employed this habit a lot when M was little, and I'm convinced it was really helpful for her. Now I do it when I'm reading to little G, and she enjoys making a game out of it.
Do you have any other simple tips for developing reading readiness when your children are at the toddler stage?