Drawnimal is a fun drawing app teaching alphabet. Kids will learn to draw 26 animals, one for each letter. I love it for its simplistic style and funny animations. I believe you and your child will like it too. It is a great way for kids to learn ABC, and drawing. It is been free for a week, and still is. Grab it when you can, but even if you missed the deal, I think it still worth it.
What makes Drawnimal different from other drawing app? You actually draw on papers, and you have to match what’s on paper with what is on screen to see the effect. But don’t worry, all drawings are extremely easy, a toddler should be able to do it. 
How does it work? Before starting the app, ask your child to put the iPad on a piece of paper that is bigger than the iPad and that he/she can draw pictures on. After starting the app, kids open a letter, say S, they will see the letter S on the top half of the screen, and an iPad image on the bottom half of the screen. They will then see a quick demonstration what they have to draw on paper around their iPad. Once they are done drawing, they can tap on the play button, and an animal image will take over the whole screen. For S, it is a sea lion missing flippers, which are drawn on the paper. Now what is on the iPad screen and what is on the paper are combined together to form a whole sea lion. Another tap on the screen will show kids some light animation. In the meantime, kids will hear “S for sea lion”.
iGameMom Comments:
Drawnimal innovatively combines the art and ABC learning into one simple app. All the required drawings on paper are so easy that even a toddler can do without much assistance. For older kids, parents can encourage them copy the part on the iPad screen onto paper so they have a whole picture on paper.
Drawnimal is available on iPhone, iPod and iPad. It is $1.99 on App Store. It is free now.
Looking for more simple art apps for kids? Try these 3 FREE Creative Art Apps for Kids. They are always free. 
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My children would have had fun with this when they were at this stage.
It is a fun one for young kids.