Hahahaha... YES. Soooo totally normal.
What I found worked the best for my son was the Charlotte Mason practice of "narrating". Which means to either repeat back in your own words, write, draw, act out, etc (my son's a performer, he acted things out... other kids are more visual, auditory, etc.) what you've just read.
With my son we started of LITERALLY sentence by sentence. Then moved onto paragraph by paragraph, then scene by scene, then chapter by chapter over the course of several months. Here's more on it:
Narration
When you ask a child to narrate, you’re asking him to tell back in his own words what he just saw, heard, or read. The narration can be oral or written or drawn — whatever. Because the child must think through the information and determine how to present it, mixed with his own opinion and impressions, this method of evaluation requires a much higher thinking level than mere fill-in-the-blank or answer-the-posed-question-with-a-fact methods. When requesting a child to narrate, word the question in an open, essay-type form, such as “Tell all you know about _____” or “Describe _____.”
If a book you’re using gives a list of Discussion Questions, first ask the child to tell you all he knows about what was just read, then use only selected questions to cover any information he omitted.
(See more ideas for narration.)
http://simplycharlottemason.com/timesavers/narration/
From being ADHD, I can absolutely promise you, that once the anxiety level gets kicked up... one can't even SEE the letters anymore. Everything just kind of swirls together (ever try to read in a dream, it's like that), and it's frustrating and embarassing, which makes it even HARDER. Vicious cycle. Making it fun, though, and not time sensitive is pretty key. If she's still early reading DO check out www.starfall.com. The interactive nature ROCKS for a lot of adhd kids.
((BTW...I was like your daughter and hyperfocused in school... until the 5th grade, and things got very very very boring for a few years / puberty struck. Ugh.))
If you're considering medicating for HW... you might try OTC stuff instead, since it's short lived and you can take or not as needed. SPECIFICALLY: A can of Mtn Dew, Coke, a mocha or latte. Enough caffeine to take the edge off and allow for concentration and calming down, without having to completely rework your lives around meds.