Well, at the moment latest and "best" is Kobo Aura One (best is in quotation marks for a reason, it has some advantages and some disadvantages).
But, my choice would be Kobo H2O, not second edition, but original edition. You still can have it (I buy on ebay, but you can found it on some other places), it has decent screen size, IR for touch detection and all in all, koreader works great with it.
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