Have the child sequence the events in the nursery rhyme with cards that illustrate the various plot points. You can say the rhyme with the child again to help him order the cards if he has trouble with the sequence. Once the cards are in the correct order, you can have the child retell the story in his own words.
Some rhymes like "The Itsy Bitsy Spider," "Five Little Monkeys" and "Pat-a-Cake" have hand motions that accompany the rhyme. Have the child demonstrate the hand motions herself. Work with her on hand and eye coordination skills and rhythm. You can teach her some signs for common words, explaining that just as the rhyme motions help tell the story, American Sign Language helps communicate meaning to those who cannot hear. Allow her to choose some words she would like to sign.
Some rhymes use letter repetition as a part of the story. Point out the letters for some of the repeated sounds in the rhyme. Trace the shape of the letter with your finger and invite him to do the same. Provide paper and pencil and allow him to reproduce the letter as he verbalizes the letter sound. Invite him to think of words in the rhyme that begin with that sound. Also ask him to think of other words that start with the same sound. You might write the words on a chalkboard or piece of paper and invite him to "read" them with you.
Use a rhyme like "Five Little Monkeys," "Ten Little Indians" or "Three Blind Mice" to teach the child number recognition. Have the child point to each number as you repeat the rhyme. Give the child a sheet of paper with pictures of monkeys or Indians or whatever the rhyme was about and have her circle the number of characters in the rhyme. Invite her to write the number on her sheet of paper. Use counters to show the correct items for other numbers.
Have the child identify the emotions experienced by the rhyme character. Talk about when the child might have felt fear ("Little Miss Muffet") or experienced pain ("Jack and Jill"). Ask the child to tell you their story.