I had a child in my daycare before who had a topical reaction to milk. Until he was tested, I didn't feel comfortable giving him milk. Once he was tested they said it is very rare, but he is not allergic to drinking it, only if it gets on his skin he gets red welts. For peanuts, I would probably have done what you did. Maybe you can let them know that if she is not allergic, you will take her back? It might take the sting out a bit.