My grandmothers little toy poodle was named Powder Puff too

....GOOD LUCK with your new baby and perhaps a 2nd opinion for her ? If you aren't happy with your vet it sounds like a good time to try another one....I LOVE my vet and couldn't imagine going to one I didn't respect or trust. It sounds like she has a mild Murmer but I sure would look into the signs of trouble and find out everything you can about it since she is SO tiny.