I'm going to go against the flow and say restricting her day sleep is probably not the answer. I tend to think that if little ones are sleeping for a couple of hours during the day, and still going to bed between 7-7.30 pm (albeit not at the moment) then she needs the sleep.

Am I reading right that she has her milk, reading etc OUT of bed and then when all that is done you put her to bed? If I've read it right, maybe try putting her into bed around 7pm ish and then do the rest of her night time routine in bed, so she's already quietening down and relaxing in her bed IYKWIM.