As unfair as the rule is, unfortunately she would count in your numbers. I have my 8 year old nephew visiting for a month right now and I know that he counts in my numbers if I take him out with the daycare or if his mom leaves him with me to go out. I have been fortunate that I have one daycare child away for an entire month, so it hasn't been an issue. I would think this could be an issue for your insurance or if someone decides to report you. I go out with 7 children because two are my own, but I am secure in the knowledge that if anyone reports me, I will be able to prove that 2 are mine and the rest are daycare children. Unless you legally adopt your gandaughter, you will not have the same assurance.