Linda, if you want to stop wrapping her, I'd suggest doing it gradually to get her used to it. Perhaps you could just loosen how tightly you wrap her each week for a few weeks before switching to a sleeping bag or something like that.

Jacob also went through a stage of waking during the night, just like Matilda, and chatting/singing to himself. He was totally happy, but it kept us up - sometimes for 3 hours at a time. Since he was happy mind you, we would just leave him in his cot and he would eventually put himself back to sleep without a worry, but sometimes he would get upset and we'd go in straight away to settle him.

Is it possible she's teething or something else is upsetting her ATM and therefore disturbing her sleep, and she's wanting a bit of a comfort feed? Just a thought......