Maybe this seems silly to you, but I've learned something more from kid cartoons than how to speak a different language or count or recognize shapes. I learned a great story layout for little kids. Here it is:
1. A goal.
2. An obstacle.
3. An obstacle.
4. Reach their goal.
I tried this method with my 2 1/2 year old last night and she wanted another story quickly. My hubby did "_____ the Astronaut" with my son, and I told a story about "Princess _______" (insert child's name into blank). My daughter's eyes would light up every time I'd say her name. Go for it! Make it up on the spot and watch your kids happiness grow. :)