When I first started reading this I thought you were going to say she got mad at you--I am glad she didn't do that! but got you involved instead!!
I like the pillow idea too. I was thinking that with the t-shirt you don't have to sew it they could tie it around. You and your daughter could cut the tabs (like with the no sew fleece blankets) and the kids could put in the form and tie it around. Or tie three sides and use polyfil and then finishing tying it.