As there is currently no way to reset your progress in-game, you will have to do it manually, through File Explorer.
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Locate the directory "C:\Users\USERNAME\AppData\LocalLow\ToastieLabs\ColoringPixels" in File Explorer, or use the keyboard shortcut "Win + R" to open the Run program, and enter the following: %appdata%..\LocalLow\ToastieLabs\ColoringPixels
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If you want to temporarily reset your progress so you can do a speedrun and then restore, I would recommend copying and pasting everything inside that folder into another folder.
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To reset all progress on the game, you can delete everything inside of this folder and you are ready to go. Open the game after doing this and everything will be reset.
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If you want to only reset your progress for the different books / DLC packs, deleting the corresponding folder will delete all progress in that pack, but not affect anything else. If you would like to reset progress on individual levels, go inside of the folder which the level is grouped with, and delete any files which end in the following: ".save", ".toast", "_backup.save", "_history.save" and also correspond to the level. For example, to reset Happy from Book 1, go inside the Book 1 folder and delete "01_Happy.save", as well as "01_Happy_backup.save". This would also include the "01_Happy.toast" and "01_Happy_history.save" files if you have done New Game+
