That would annoy me BIG time! I get annoyed when people come up and pet my dogs without asking, let alone pick them up!
And don't even go there with trying to tell me what to do or not do with my pets
There are so many pyschotic people in this world
Just be careful how you deal with her, sometimes if you say the wrong thing it can make it worse and with her being your neighbor I'd hate for you to have to deal with her all the time. Maybe you could tell her you are trying to train your baby to walk when you're outside and you no longer allow anyone to pick her up, something like that...I hope you are able to figure something out!
