Hello S.,
Ok this is a tough one, in my case my son was the exact same way. Did NOT want milk in anything but a bottle. I didnt throw them away, but I bought those newbie sippy cups with the soft nipple thingy. At first he wasnt happy about it, but after putting everything he wanted to drink in it all day he didnt fight me that night. I actually didnt get rid of the bottles until about a month after I knew he wouldnt go back, plus I wasnt really ready to let them go. LOL. I did make sure not to let him see I still had them though or he would have asked me for it. Praising him about how nice his new big boy cup was and showing him how it can change colors helped a lot too. Oh the milk thing, I would think 1% is fine because she is so close to being 2 soon.