em3 - She will eat more in the day to compensate for the milk at night. Seriously, she will not starve without her midnight milk.
Re afternoon nap, I just wanted to tell you what kids this age usually do. Every 2 year old I have ever seen slept once a day and that was in the afternoon. If she is happy and you are happy with the morning nap, by all means, keep it.
If she does not want to sleep at 7 PM, maybe she should go to bed a little later. Do you eat dinner together as a family with such an early bedtime? ("Early" for me, not necessarily for everybody. dh arrives home after 7 PM, by the time we eat dinner together and put 2 yr dd to bed, it is after 8 PM.)
No matter her bedtimes, you need to (1) break your dd's midnight bottle habit, and (2) keep her in her room when she wakes up at night.
To each their own, and just reading through the couple of messsages on this short thread, you see that there are different opinions on this matter. Personally, I believe in giving good habits to one's kid. Everyone sleeps in their own bed and Nighttime is for sleep are two very good habits for kids.