A Pocket can Have a Treasure in It by Kathy Stinson and Deirdre Betteridge

From chapters.ca:
Celebrated children's writer Kathy Stinson explores "what's- in- what" concepts for young children. With a chorus of questions that encourage interaction, children will delight in playing with the language of spatial relationships, from a pocket holding a treasure to a spoon with a face reflected in it. For one young girl, a day on the farm is full of familiar sights that lead to the unexpected. The barn has a horse in it...just like a house can have a "me" in it. A sock can't have a head in it, but it can have a toe in it. A pond can even have a splash in it. Best of all, when Mommy comes home, she has a blanket that has a wiggle in it - a brand new baby. Joining charming pictures and a satisfying story with language- learning ideas, A Pocket Can Have a Treasure in It will hold the attention of parents and children alike.