There's only about an hour A time at this age so by the time you've done a feed and nappy change there isn't much time for anything else other than beginning the wind down. Although I did notice mine was becoming more alert at this age and liked to have a little song or chat and a look around.
It's would be good if you can start to put her down for some sleeps (if only to get your hands free for your other child and for yourself to get a shower etc) but don't stress over it, all those cuddles are great for bonding, I'm sure you'll never regret them.
Tracy said to start babies sleeping in their own crib but IIWM I would try to put down for sleep in a stroller in the living room or nearby so that she's still around you and becomes comfortable in the stroller so that you have some flexibility to go out and about with your older child rather than being limited to staying home for baby's naps.
In the early stages you would usually use shush/pat in arms until LO is asleep then put down and continue shush/pat in the crib/stroller until she gets to a deep sleep. Then move to putting LO down when nodding but still just about awake. Then when drowsy.
I began this way, putting to sleep in a travel cot (like pack and play) in the family room. It was a slow and gentle process and took much time (it takes a baby 20 mins to fall to sleep, I saw each of the stages Tracy described in that 20 mins) but he was sleeping independently by around 8 weeks. And so independently by 10 wks that he refused to sleep in the travel cot and wanted to be up in his own bed - my difficulty was getting him to sleep out and about, he wouldn’t sleep in the stroller and I found that difficult (which is why I now think it's a great idea to build a stroller habit!).
The links Martii has posted are really useful, I'm just giving my perspective on early sleep habits.