engine build for reliability

Safety, brakes and suspension would be my main concern. Engine is the easy part.

I wouldn't build a car for my kids, they would need to be involved in order to learn what you/they doing, how it works and to diagnose and repair it.

This is exactly the path my son and I are taking. 65 Valiant, 170 /6. We're going to get it running well first, move on to the brakes, then the electrical. He's getting dirtier then I am. Teaching him as I go and re-learning what I've forgot. it's a great bonding experience as well.

I know this isn't really what the OP was asking about, but part of reliability is the ability to fix something in a pinch, even if temporary. Improvise, adapt and overcome....

My nephew once, had a tire pop a bead on his truck out four wheeling by himself. Grabbed a ratchet strap, some engine starter and a lighter. 20 minutes later he had the tire back on with enough pressure in it to limp home. Far too many kids these days have no idea what to do in an emergency situation.

Whatever you do, by all means, make her part of the equation and you'll make the reliability factor even higher.