The Cat, the Dog, Little Red, the Exploding Eggs, the Wolf, and Grandma by Diane and Christyan Fox

From chapters.ca:
Cat starts reading "Little Red Riding Hood" and explains, "It's a story about a little girl who always wears a red cape with a hood." Dog says, "COOL! I love stories about superheroes. What's her special power?" Cat says, "She doesn't have any special powers. It's not that kind of a story." And then the fun ensues! The zany, fun back-and-forth of Dog and Cat celebrates the joy of reading — and questioning. Young children will cheer Dog's persistent questions as well as Cat's dedication to keep telling the story.