M0nica
DD started reading at 2 3/4. Like me she did it by having me read books to her, essentially the old popular Look-and-Say method.
I strongly suspect that both you and she worked out the phonics for yourselves. A lot of children do, probably as many as 50%.
Memory for words as 'wholes' fails after about 2,500 - 3,000. An educated adult reading vocabulary comprises about 30,000 words...
Just for interest, how about 'reading' this word and noting how you do it:
Otorhinolaryngologic
One thing I will bet any money on is that no-one will be able to just glance' at it and know what it 'says' ...(unless you already know it)
(If you know it already I can find another one....)