I have gone through this same dilemma, God I hate fevers. They freak me out, but I am a worrier!
DS had several fevers last winter and I got the same advice each time from my family doc, chiropractor, walk-in docs, emergency room pediatrician and our government nurse-line:
Under 102: Low grade fever, let it run it's course.
102-104: Mid-grade fever, treat with Tylenol for comfort.
104 - 105: High-fever, still not dangerous, treat with Tylenol for comfort and to prevent from getting overheated. May justify a visit to the doc if continues at this level.
Rectal temps are most accurate; others (ear, armpit, etc.) can be off by as much as a degree so I've been told not to even use them.
Advice was always the same:
1. Dress loosely in light clothing, (you want to prevent a chill, but also to prevent overheating).
2. Fevers in themselves are not dangerous. Brain damage can occur once you are up around 107 or 108, but the body will not go to this level on it's own from a virus/illness, (i.e. it may in conjunction with overbundling, warm bath, external heat, etc.).
3. NEVER give a bath - too much chance of overheating or making illness worse if baby gets a chill if you don't get the water temp exactly right.
4. What is more important than a fever is how the baby is acting and the fever's response to fever-reducers. For example, a fever of 103 that isn't brought down by Tylenol (after 1/2 hour or so) may indicate a bacterial infection (i.e. ear infection) and would warrant a visit to the doc. A fever of 99, but where the babe is very lethargic, unresponsive, glazed eyes, refusing to eat/drink etc. would warrant a visit to a doc.
My guy was 6 months at the time and had a fever of 104.8 for 5 days straight. Of course, I went every day to a new doc/walk-in, even tried Emerg convinced they were all missing something...The docs around here (I'm near Toronto, Canada) don't even take temps anymore when you go to the walk-in or Emergency room. If the babe is acting fine, (which mine always is when I go panicking to the doc with a fever), they always look at him, and send me home with the above advice.
From the sounds of it, I would just give Tylenol for comfort, ensure the fever does reduce, let her sleep as much as she wants, don't dress her too warmly or let her get a chill, lots of fluids, and just ride it out. She'll be fine. It is great that she is eating/drinking. She doesn't sound too sick, just like a little girl with a fever.