Ahh! My Claudia did that when she was 9 months! She stopped nursing during the day completely and started waking up every 3 hours at night! I feel for you!
My situation was a bit different because I cut out all night feeds, which I don't think you should do. However, it just took me one night and she started nursing during the day again. I did a version of PU/PD whenever she woke up throughout the night and absolutely refused to feed her. The first time she woke up, I held her for a few minutes and then laid her back down and she went to sleep. She woke up a 1/2 hour later and I did the same thing. When she woke a 1/2 hour later, I didn't even pick her up. I just laid her back down on her tummy each time she sat up in her crib. She screamed at the top of her lungs for 45 minutes, but then she finally realized that I was going to lay her down each time. She finally laid down, went to sleep, and I didn't hear from her until morning. She nursed great the next day. The following nights, she still woke up once or twice, but I just had to lay her down--there was no screaming.
So, my suggestion is to find the version of PU/PD that will work for your baby. If it is traditional PU/PD, your hand on her back, laying her back down when she sits up--whatever you think will work for your baby.
Then, I would keep the dreamfeed--it is not unusual to have a dreamfeed at 7 months. When she wakes at 1am, that's the time that I would not feed her. Do whatever your PU/PD method is for however long it takes. I would not feed her at 4am either though--I would push that back until at least 5.