I am a big fan of vinegar to help treat the yeasties, in addition to cutting sugar and using the acidophilus powder. Do not put it on her skin, but do put in your laundry when washing. When her skin is not so irritated you can add a cup to her bath water, but only if her skin is not irritated..ie red and sore. But don't do it every day either, cause it can cause her irritation. If you can up her garlic intake that is good too as it is a natural antifungal.
http://cooksewbitchy.blogspot.com/

point to digestive distress - meaning that the flora in her gut is having a severe imbalance. IMO, using antibiotics doesn't make much sense. Yes, it will clear it up, but it's not solving the problems. If we kill off a huge population of wolves in Alaska (just to use a timely example), then the deer start to get out of control and eat all of the wildlife. If our solution to that problem is to go in a kill the deer, we are left with a forest without either of those animals, which is going to then start springing up imbalances in all kinds of other ways (the plants the deer eat getting out of control, etc...)
We get our gut flora from our mama and if we screw it up, it's hard to fix. We don't really know who all the beneficial bacteria in there are. We know lactobacillus and acidophilus are part of that, but they aren't the only ones, so we can't take antibiotics and then just shove a bunch of yogurt in our mouths and think that we are the same. We won't be. And, our gut flora are specially catered to our diets. Vegetarians have different flora than meat eaters, etc... and so each persons balance is really delicate and important for the foods that they are eating.

I think you are making a smart decision not to use the antibiotics. It's been proven that the use of antibiotics for ear infections leads to chronic ear infections later. I do think it would be wise to consult someone who actually has a degree in natural medicine - an ND, LAc or ayurvedic practitioner, but if this woman feels right to you and you trust her, then that might be the best thing for your daughter.

I definitely think that taking the acidophilus will help and the removal of sugar is imperative. None of our kids should be eating it cause their systems are too sensitive. I would make sure to replace it with healthy sweet foods though, because the sweet flavor nourishes the stomach/spleen system - so things like root vegetables (yams, sweet potatoes, beets, rutabaga, turnips, parsnips), pork, health whole grains (brown rice, quinoa, millet, oatmeal, etc...) would be good to put into her system right now. Those are things that really help the digestive system. I would stay away from foods that are too warming, especially shrimp, beef, spicy foods, and processed foods and other toxins that find their way onto our shelves.

I would make a tea for her from 2 parts spearmint 1 part licorice root and keep it in the fridge if necessary and give her a little to drink after meals. If she won't take it, you could sweeten it with a little stevia leaf and if that doesn't work, a small amount of honey. Adding a teaspoon or so of aloe vera juice (can usually find this at trader joes) to her morning beverage would be beneficial for her stomach too.

You are doing great things and your babe will feel better soon. She will thank you later for not using the antibiotics. They don't solve the problem - they just kill off more things in an already imbalanced forest. The acidophilus paste will get rid of the infection soon - it's like putting the wolves back into the forest of deer. You don't have to go shoot them all now.

"Fundamentally the markswoman aims at herself" DT Suzuki

that since she's on antibiotics, shes getting the acidophilus orally, as well. You can try grapeseed oil as well, for the yeast rash, because its a good yeast killer. When Bear was born, he had a WICKED yeast infected rearend, and after a while, even my midwife gave me nystatin. Try everything else first, and if it doesn't work...then go prescription

~Seriousness is a sickness; your sense of humor makes you more human, more humble.~

It`s not that they cause yeast infections, but they kill of the good bacteria that normally keeps a bodies yeast in check (we all have yeast in our bodies all the time). That said- I think that the natural treatment would work great since it boosts the good bacteria- except that your antibiotic is probably gonna kill all those bifidus you're putting on there too.
So i would probably go for the nystatin this time, but in the future i would use the natural treatment any and every time that monkey girl takes antibiotics as a preventitive measure. And maybe use it after the nystatin too. Of course, i am neither a doctor nor a natural medicine guru, so maybe you shouldn't pay any attention to me.

can cause yeastie beasties, can't they? I think I remember hearing something like that. Did you tell the lady at the hippie store about the antibiotics?

In general I'm all about the natural cures; but I think I would just use the anti-fungal cream in this case. Monistat, whatever OTC yeast cream is cheapest should be fine. I just wonder if the natural cure is strong enough to use with antibiotics feeding the yeast.

but just for what it is worth nystatin has worked wonders for my boy in handling the yeasty diaper rash from hell. I did not try acidophilous though so can't comment on that.
good luck!