I think you just need to go with what your comfortable with, most people will understand that she's only little and it's all quite daunting.

Personally i'd still go and just mention your still working on your 'bond' together and although you know everyone would love a cuddle it's a lot of people in a small period of time and you'd much prefer the 'look but can't touch policy'

DD1 was a couple of months old but she was tiny at x-mas we went to MIL's and had a great morning, but everyone understood she's not a toy and she wasn't to be bundled off to person after person.