My friend Bev came up with this brilliant idea years ago. I didn't need it for a number of years, but last year I had several students who benefitted from having more interaction during their story time.
We simply took an inexpensive paperback book and cut it apart. Next we ran the pages through the laminator. We then took a targeted vocabulary word from each page and created a Boardmaker document with a picture. Next we used the hole punch binding tool that we have in our teacher workroom to bind the book back together. Finally, we used velcro dots to make each page interactive.
This has been a great way for us to create inexpensive interactive books for circle time.