Hi everyone, and thanks for all the input. She hasn't asked for it, but has mentioned it maybe flying away, :P. I just said that we've been doing a lot of cleaning and reorganizing lately, so it's probably just lost for now, but we'll surely find it soon, if not when we move. That was enough for her. So she knows it's in the house.
I am keeping it. I would never get rid of it. The thought never even crossed my mind. The only thing I'm unsure she is when to introduce it back. She has shown amazing progress in the last week or so without it. She is still not as "touchy" as the next kid, but neither is her dad, and I'm sure that's just her personality. The problem, which I noticed others picked up on, was that she was adamantly against touch of any kind. I was very worried for awhile that it was a sensory thing, but we found that this wasn't the case. She just couldn't stand anyone touching her, at all. I don't feel any need to have me be her "lovey", I get enough touch from my 8 month old who I lovingly call my little "koala bear", because he is ALWAYS attached to me. (And as a side note, this behavior of my daughters wasn't brought on by the baby, but it did get worse when she saw how much he gets held, which says to me that she does in fact want to be held, touched...)
As far as it disappearing before, and thinking it will come back. It didn't necessarily "disappear". It was left in the car on one occasion, but quickly brought back inside when we realized she needed it. And the only other occasion was when she was hitting us with it, in which case I wasn't going to allow her to hit us with it anymore, so it was put on the counter, not in a box in the shed...
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Anyway, yes she will get it back, as I have mentioned before. I'm not punishing her, and I'm allowing her space, and also not forcing myself on her. If she's sad I ask if she'd like a hug. Before, it was an adamant "NO! I DON'T WANT TO BE TOUCHED! I WANT BLANKET!", whereas now she may stomp off and take a breather, but is back in less than 2-3 minutes, tops, and ready to say sorry, hug if she wants, pat her brother's hand lovingly, etc..
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This was a difficult decision for me to make, even though it was fairly spontaneous. I put it up mid-day, and she was unaware that it went missing until night time, so I had time to change my mind. I could have woke up in the middle of the night and put it under a toy or in a cabinet, and played it off, but I was watching her cues and seeing how it was affecting her.
I don't know if I would say she has anxiety. She does feel and experience things on a deeper level, I know that. She rubs her lip with the back of her painted fingernail frequently, but so do I, and I can't think of anything I really have to worry about, so it may just be a funny habit. I do it because it's really soft. I did it with my moms nails when I was growing up, too, now that I think of it, so it may not be so much of an anxiety thing. She's never complained of stomachache, or headaches, or anything like that..
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I thank everyone for their feedback, even the negative kind. It has helped me question what I'm doing to make sure that I am doing the right thing by her. I talked with my husband about it, and he didn't realize what I was doing. He thought it got dirty and was waiting to be washed or something. I find that funny, because even when that thing was filthy, she needed to have it, or things weren't pretty, lol...So it got washed very quickly when it really needed it... But, anyway, he said he did notice she was behaving better, and that she wasn't as hesitant to being touched.