FWIW I am a home-educating mum and also work as a reading tutor.
The first thing I would say is that seven is still pretty young, and children at that age can be perfectly normal and at really different levels. This doesn't necessarily relate to how well they will read later on. Young kids just develop different areas at different times.
It is good to keep moving forward though.
As far as the handwriting - less is really more here to an extent. Small kids are often asked to write too much, and it is difficult for them. It's better to do very short periods writing, once or twice a day, but really doing best work with proper letter formation. Five minutes is fine, or up to ten. Watch to see if she seems to be getting messier or is gripping too hard, and stop her before she becomes uncomfortable or can no longer pay attention.
If you would like a workbook, Handwriting Without Tears is a good choice. It is worth watching to make sure she forms the letters correctly, it will become much easier for he to write that way. You can also just do copywork, where you write a sentence and she copies it. Choose sentences from books you read to her or which she has dictated to you.
As far as composition, until she is writing well, do it orally. Her abilities there will likely be better than her handwriting. Have her tell you the story or about the topic in good, full sentences, with a beginning, middle, and end to the story. You can write it down or use a program that will transcribe it for her. There is lots of time for dealing with writing mechanics beyond that once her muscles are better able to write large amounts of text.
For reading, I would recommend a phonics program. There are lots to choose from, you can see some reviews of programs here: cathyduffyreviews.com/homeschool-reviews-core-curricula/phonics-reading
I would go for something simple, maybe Phonics Pathways, but there are lots of choices.
The other important thing is to read to her - she will get to understand reading but being read to, and not from readers, but children's books with good stories.