Reddit mentions of Middle Egyptian Literature: Eight Literary Works Of The Middle Kingdom

Most people start learning Middle Egyptian, and Allen is pretty much the standard English grammar book that most universities use these days. My only problem is that Allen is, in my opinion, not very well suited to learning on your own. It's a great reference book, but the way the lessons are presented is a bit obtuse, and the self-guided exercises are kinda awful. Granted, I used the second edition, and it's now in third, so some of the issues I had may have been corrected. Jim Allen has also released a companion volume of a sort of "greatest hits" of Middle Egyptian texts, and being able to learn and practice by diving right in to actual stories is helpful, I think.

If you want to start with Late Egyptian, I recommend "The Language of Ramesses" by Neveu which is a new-ish (2015) grammar, and it's pretty fantastic, and easy at least compared to the older Late Egyptian grammars that were available (like Junge). I find Late Egyptian easier, and more rewarding, to read, personally. The grammar rules are easier and better defined (from a modern perspective, at least), and there's a TON of literature in all genres in Late Egyptian.