Unless you can desensitize her using some actual children, I would just rein her in when she's around kiddos. My Jilly was totally scared of kids so she would try to protect herself by showing the best defense was a good offense and turning her tiny head to one side, glaring out of the corners of her walled little eyes, she would growl, show teeth and put up the biggest screeching noise, telling them in so many words "I'm just little and terrified and don't you kids come over here and hurt me! Don't you dare - oh please". The antics and noise and sudden movements and unrestrained activity of kids really scare many little dogs a lot of the time and only having a few kids in and having them feed some treats to the dog, jump around some as she's safe nearby getting fed more treats, will start to help but honestly, I'd just keep her away from them, in your lap and restrained when they are around w/o the ability to train, desensitize her to them.
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