Magnet School

This is one of my favorite toys I've gotten the kids, we got it for Owen when he was 2yo for Christmas and he still gets it out to play with quite a bit.  The girls like to play with it as well and can identify all of the letters on their own, a big step since they have the attention span of a gnat.  I got it at Target, not sure if they even still sell it but if you have little ones you should look into it, Magnet School by Parents.  It's a cross between a puzzle and a game, comes in it own tin container and is easy enough for the kids to play and clean up by themselves, even Norah is getting in on the action.