Hi there and welcome to YT! I just saw your pic of KC...she's adorable. I replied there about what helps with your situation. Make sure you don't hit (even lightly) because it truly does just bring out the scared terrier in them ok?
Please read my tips here:
http://www.yorkietalk.com/forums/my-...ml#post4154564
Definitely ask any questions you have. This forum is filled with knowledge and experience on all things Yorkie
