My lo has a blanket he sleeps with always. sometimes they need something to rub their face in to calm them. I would just check on her and move it if you feel it is to close. Braxton has learned to move it off his face and he doesn't have a problem with it, but I was nervous liek you before and I would just go in and be sure it wasn't over his face when he was asleep. Remember that your LO chooses their lovie, not you, so you ahve to be willing to try things that will help. Also you may try getting a recieving blanket and sleeping with it for a week and then giving it to her or maybe get some t-shirt fabric from a fabric store and try that. that way it wil feel like a t shrt but wouldn't be that.... I don't know if that helps because it is still cloth, but I would just move it if it makes you feel uncomfortable, I wouldn't take it out though because if she needs it and it isn't there then she will need you to get her back to a comfortable place to go to sleep.