One of my favorite textbooks on algorithms—in spite of the fact that it's twenty years old—is Udi Manber's Introduction to Algorithms: A Creative Approach. However, I have never been tempted to actually use it in class. You see, the book's greatest strength is also its greatest weakness.
Most textbooks on algorithms show you a lot of polished algorithms, but provide little or no insight on how to go about designing such algorithms. Manber's book does a very good job providing such insight, by making an analogy with inductive proofs. If you have any skill with induction, then you can use Manber's approach to help you design algorithms. (Of course, this should come as no surprise since writing an inductive proof and writing a recursive function are essentially the same activity.)
I'm sure you see the flaw here—most students are even less comfortable with induction than they are with recursion. It's like trying to help somebody learn to drive a car by making an analogy with riding a unicycle. For a certain segment of the audience, that analogy might be just what they need, but for the most of the audience, the analogy will only produce puzzled looks.
I was recently helping a student who was struggling to get a handle on recursion. He was making the common beginner mistake of trying to think about what happens during the recursive call instead of trusting that the recursive call works (sometimes called the recursive leap of faith). By sheer coincidence, I had happened to notice the day before that this student had done very well in our discrete math course the previous year. Time to give it a try...
“You know when you're writing a proof by induction and at some point you use the inductive hypothesis? That's just like a recursive call. You don't worry about what happens inside the inductive hypothesis, you just say ‘Assume that it works for N-1...’ It's the same with recursion. You just assume that the recursive call works.”
That comparison actually seemed to help. Maybe Manber was onto something after all!