+1 on being able to cut the seat post down a bit. As BD said, just don't cut it so much that you don't have much left to insert into the tube. If you need the seat lowered an inch, then cut off an inch.
That said, if one cannot easily reach the pedals at the minimum seat post height, then that bike is not a "little big," it is a "LOT big." You're description sounds like the bike may be two sizes off of optimal. If so then much of the geometry will be wrong for her.
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