Kdescalzi, you said it yourself. She doesn't know how to go to sleep when she isn't nursing. Now, she's getting past the age where nursing-to-sleep works for her. She needs a new technique--whether you need the break or not, the important thing is that she needs the new technique. I wouldn't keep offering nursing if it's not soothing her. And you are helping her to develop a technique that will work for her--maybe she'll settle on her thumb, or a teddy bear, or she'll twirl her hair, or something else.
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I do not understand the posters who claim that the only technique for sleeping through the night is continued nursing. Night nursing beyond 12 months, or 18 months at the very most, is a soothing technique, not a nutritional need for most non-special needs babies. If it continues to work as a soothing technique, then by all means, continue to provide it. But when the child isn't sleeping, or the mother isn't sleeping, then it's time to develop a new technique. You wouldn't expect a 7 year old to nurse to sleep, so why would you expect a 3 year old? Kids can and must develop another way to get themselves to sleep at some point, so why not develop that new way when something about the old way has broken down?
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I find it so frustrating that night-time parenting is so often couched in terms of "good" self-sacrificing mothers who will endlessly do something they find intolerable (be woken up, have endless nipple stimulation) and "bad" mothers who help their children find their own ways to get to sleep. No one here is advocating buying a crib, stuffing the kid into it, and locking the door until morning. Offering soothing while allowing your child to develop their own way of getting to sleep does not strike me as emotionally abandoning or not self-sacrificing.
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Kdescalzi, I wonder if your DD hasn't come to find co-sleeping to be too-stimulating. One of my children could not stand to be in bed with us--she can't sleep if anyone is touching her, and she was that way starting at 3 months of age. When she was an infant, we kept her in our room, but in her own baby hammock. Perhaps your DD would like to try sleeping on a mattress on the floor in your bedroom--that way, when you and your partner move around, she won't be jostled. I would make a little celebration out of that--perhaps she could pick out a sleeping bag that would be just for her, or a toddler-safe flashlight to keep in bed with her. If she cries at night, you could lie down next to her, without dragging her back into the big bed.
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Hang in there. Of course, you're both exhausted, and probably half of her crying is due to being tired out of her mind. It will probably take a few nights, or even a few weeks to build her back up to her normal sleep amount once she gets the hang of the new way.