It sounds like the cat may be lonely and wanting company. You could try getting a second, perhaps older cat that will serve as company and a behavioral example. The risk here is that you may end up with TWO crazy cats and have to find homes for both of them. It should be all right to let the cat sleep with your daughter, since she's old enough to be able to change positions in her sleep and push a cat off her. (Though my in-laws let cats sleep with their kids at any age, and had no troubles with suffocation. But we don't let our cats sleep in our son's room because one tends to get curious and knock things over.)
Additionally, the cat may need more exercise to work off her energy. We have a 2.5 year old cat that drove us nuts for the first couple years, and we tried to find a new home for him, but no takers. I didn't want to put him in a shelter where he'd be likely euthanized; we ended up keeping him and now we're in a new home with a cat door and a fenced back yard that he and our 17-year-old cat can run around in. Our younger cat started yowling at 2 and 3am when we first moved, because of the new situation, and after a few nights of this I shoved him through the cat door (which he was still afraid of) in frustration, and he didn't yowl anymore after that. Now he meows in the morning around the time my husband and I generally wake up, and our toddler often meows back from his bedroom.
Um... so - you can either give the cat up to another owner who is willing to take on the challenge, or you can try getting another cat so she will not be so alone during the day, or if your yard is fenced you could let the cat outside for exercise and more things to do. Older cats found at shelters often have a lot of years left in them, and their personalities are set so you can have an idea of whether they'll fit into your home better, and they can serve as a check on the more rambunctious behavior of other cats. An idea would be to take the current cat along to the shelter to see if the cats might get along.