I have this with Conner to, no aggression, he is just genetically shy.
Try to start small with her, just little baby steps and each little time she shows even the smallest step to trying to sniff or anything praise her. Another method would have to be very consistant on your part for right now, carry treats with you, every time you see her give her a treat, that will help her make the association that you mean treats and you are good. Then once more confident with that venture out a little, maybe get a neighbor or friend that could help you. Have the friend (someone you see frequently) give her treats everytime.
With conner I take him to school everyday to pick up my daughter. At first he would just freeze and pull away when we walked by this house with little weenie dogs that bark. He would do the same to the garbage cans and anything else strange. Now when we walk to school he is confident and will walk calmly all the way there. He will greet the crossing guard, who is a dog friendly person, he will greet my daughters friends mom, and last week the other neighbors started bringing there dogs and he will greet the one little one and is getting closer to greeting the bigger one. It has been a hard road and lots of baby steps and lots of patience.
With the sleeping thing maybe a covered crate would be good. make a safe place for her to go when she feels uncomfortable. Keep it in the bedroom to start, then just gradually move it to busier places in the home. I will make her feel safe but also let her experience the noises and movements of the home.
I am not a certified trainer yet but I am working on it. Conner is starting puppy classes on Sat. to help with his socialization, the doggie park was to much to fast for him so this will be a great way to help him out.
Also find things and areas that make her comfortable, use those to branch out to other areas. The biggest thing is don't feel sorry for her, don't fuss to much if she's afraid, if you do that you will only be reinforcing that behavior. so try to find things she's not afraid of and start there, the other stuff will come with consistancy and time.
Good luck with your baby and I hope some of this can help you.