Thanks for writing.
I would like to reassure you that the body hair can normally be expected to decrease in children over a period of time. Excessive body hair is commonly related to genetics. If your daughter is otherwise perfectly normal, I would suggest that you wait for say about 6 months-1 year. If the body hair decrease, you can continue your wait and watch technique. Otherwise, please see her paediatrician for getting a testosterone level
done. Excessive levels of testosterone can sometimes cause excess body hair.
A common home remedy to decrease body hair is to make a paste with wheat flour and milk. This can be put on the body and allowed to dry. This then needs to be rubbed off using a little oil.
A mixture of honey and lemon juice (4:1 ratio) will also help.
Hope this helps.