That is so exciting! I'm hoping perhaps my granddaughter will be the one who is interested in sewing/quilting when she gets older (she's just 15 months, so it will be a few years yet!).
I would think starting off with 100% cotton would be easiest at first (as opposed to some sort of blend that might be a bit more difficult to handle). Maybe start off with material/pattern to make a small project (like a table runner or potholders). If something like that, then also add in a rotary cutter, small cutting mat, ruler, pins. I'd probably just go with cotton thread also (such as Aurifil 50 wt or something similar). Then add some pretty fabric and batting to go with.
I'm sure you will have so much fun sharing/sewing with your granddaughter!