I started training both of mine to go potty outside when I brought them home at 8 weeks. The longer you use the pee pads, the more confused she will be about going potty outside. You should pick either pee pad or outside and stick to that method only...don't mix the methods bc that will only confuse her. And as long as she is not going places where there are tons of dogs, like a park, it should be fine for her to start learning to go potty outside. I would NOT cut off her food or water at any point in the night. These little guys can get dehydrated or hypoglocemic so fast...her food and water need to be available to her at all times. And because she is little, she is going to have to go potty in the middle of the night. That is just part of owning a yorkies, espeically a puppy. My 14 month old yorkie still gets up most nights to go potty outside. If she sleeps in her crate at night, you need to have the crate in your room so you can listen for her to wake up at night and if she does wake up, take her outside to potty. The easiest thing would be to let her just sleep in bed with you so you will know when she wakes up and then just take her outside. As for the rest of the day and crate training, here is an EXCELLENT article and sample schedule on how to crate train/potty train your puppy:
http://www.darnfar.com/Dog%20Trainin...ng_a_puppy.htm
I crate trained and outside potty trained BOTH of my yorkies. I think outside is better because I just don't think a dog should think it is alright to go potty inside, no matter where it is. Also, when we go visit family and friends, it would be so embarrassing to have that pee pad in their house for my dogs to go potty on. You just don't know how people feel about your dog going to the bathroom in their house, no matter where it is. Also, you live in Georgia, and like Alabama, it really doesn't get that cold here. I got my first yorkie in December and he did perfectly fine in the dead of winter going potty outside. Actually, I think they do BETTER being potty trained during the winter because they don't want to play outside. They go outside, do their business, and wanna come right back in. SO, sorry to be so winded, but I would go ahead and start teaching her to potty outside and follow the crate training advice in that article.