Dayal's first contribution to children's literature was the creation of three series of booklets, The Baabee Books, Series I, II and III, published by Tundra Books in 1983 and 1984. Each booklet contains 12 images and is folded like an accordion. The style is deliberately simplistic, using contrasting colours such as blue, yellow, pink, red, green and brown. Khalsa drew her inspiration from the time spent observing toddler behaviour while on summer vacation in an ashram in New Mexico. Created for children between two and 12 months old, the illustrations elicit dialogue, and the sturdy cardboard construction of the booklets is resistant to multiple use by children.

Baabee Book Series III Illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1984.

Tales of a Gambling Grandma Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1986.

I Want a Dog Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1987.

Sleepers Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1988.

My Family Vacation Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1988.

How Pizza Came to Our Town Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1989.

Julian Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1989.

Cowboy Dreams Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1990.

The Snow Cat Text and illustrations by Dayal Kaur Khalsa Montreal: Tundra Books, 1992.

Tales of a Gambling Grandma