Maybe take her to one of those beading places and make a special necklace or whatever with good quality beads. While you're making the necklace, tell a story so each part of the necklace represents a part of the story. I did this once with my DD1 and made up a story about a queen who loved her daughter the princess so much she travelled out in the royal carriage to find some treasure. Each jewel she found said something about the princess, like the blue one was about how she speaks the truth, the red one about how loved she is, etc... Just make sure you commit the story to memory cos you will asked to tell it many times over .

Personally I would steer clear of dress up/portraity type things - too much emphasis on appearance. Choose something that shows you love your daughter for her spirit, her keen mind, her kindness, the unique person that she is.
oh i like this! great idea marydean!!