Well OP I hope you are not too upset and can come back and read without bursting into tears at the harsh quips and Holier than Thou Judgments some posters have callously lashed down here without any empathy, knowledge or concern for the real people who are living through and in this situation right now.
Blimey - some responses have been terrifying.
This isn't an Am I being unreasonable thread people....
I just wanted to say to the OP that it sounds like you have been and are still involved in your first daughter's life - even your name here Momto3 is a big clue in that.
most of the posters here have said that we don't understand what an open adoption is (didn't stop some of them having Opinions, but then lack of knowledge rarely stops people from shooting from the hip ), and from what I can glean from your post you have been holding your DD in your heart for her life; and eeping an eye on her as much as you are allowed, with reports.
I have very little experience of adoption - a lot of my friends are adopted, one friend also gave up his daughter for adoption at 16, and I can only go on what they tell me. And on the basis of what my lovely friends tell me, adoption isn't cut and dried - far from it - it's always a tangle of emotions and yearnings, and sometimes a great deal of 'what ifs?'.
I hope that you can find a resolution, that accommodates all your children, with the best result for all. Some counseling might enable you to find that resolution: just an idea.
Good luck and hugs.