Re: one on one with a seven year old How about cutting pictures out of a magazine and letting her tell you a story, using them to illustrate it. This will give her the chance to express herself and use her fantasy \ imagination. If she's a bit shy, help her along by asking for some extra details on anything she tells you.
You could always watch a cartoon, stopping it every so often to ask questions \ predict what's going to happen \ make up a new dialogue etc.
Good luck.
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