we read a lot and draw. I have several good phonics books and videos that we have been working with lately. My 3 year old has a very vivid imagination and I want to encourage that so we do a lot of art - drawing, homemade clay was fun, etc. He loves computer games where you find hidden objects - so we do that sometimes too.
The reading I am trying to push early in fun ways, because I believe if you can read well you can learn to do anything - and I want him to love and embrace learning.
I also take him with me into the garden and let him "help" me with the housework etc. and we make a lot of those activities fun so that A) he enjoys himself and B) I can actually get some work done if he thinks it's all play ;) lol.