Omg I love your daughter's hair! I could only hope that my daughter will hair as "big", if not "bigger" than your baby's hair. It is beautiful!
You just need to learn how to care for it. If you don't love the hair, it won't love you back.
Get rid of the Pink! It's not doing any good to her hair. Read the book "Curly Like Me" by Teri Laflesh. This book talks about a biracial woman who has a history of permed and relaxed hair and is now all natural with GORGEOUS hair, she found a way to deal with her hair, and it's just so beautiful and healthy.
Just don't do it, okay. Once it's damaged, it's damaged, you can't restore it, except if you do the Big Cut.
And please, tell her hair is beautiful. Don't hate her hair, don't tell her you don't like her hair. Help her build a good positive self esteem. All hair is beautiful, no matter what shape it comes in.

I also invite you to join my group on Cafemom. Look it up under "biracial haircare". You can share your thoughts and problems about her hair there with other moms going through the same, and get some constructing advice.