Hey OP, to answer your last question, I liked the book ToddlerCalm (there is also BabyCalm). It's not the most dense text in terms of development, but I think it excellent at helping you to understand your child's experience of the world and herself.
I had SUCH a lightbulb moment when I realised that DD was howling because she was exhausted. Seems bloody obvious in retrospect but something about trying to get a small child to sleep erodes your ability to think clearly. It's like being in a maze in the dark, you end up questioning which way is up.
For the routine, I would let go of the idea of feeding to the clock and find something that works for you. At 7 months, two meals a day is plenty. At that age (I was doing BLW) DD was having something like 'breakfast' at 11 (she would wake, milk feed, nap - she was always very early with her first nap) and then eat post nap. Then she would have a second meal mid afternoon, when I felt she was in the best frame of mind. BLW is I think pretty stimulating and tiring for them - which is one fantastic reason to do it, as it a great sensory / play experience - but it maybe requires slightly different thinking. She'll be working her brain like mad - all her senses, and her motor skills too. And then that gave us plenty of time for bath, milk feed, stories, bed.
Once you have time to sort out your routine, move the milk feed earlier. So instead of bath, stories, feed, bed, do bath, feed, stories, bed.
Remember that baths are stimulating and raise their core temperature, which prevents sleep, so don't expect her to be able to sleep until at least half an hour after a warm bath.
Re staying with them and what to do. I think this depends so much on the LO and you have to judge best. Eg being held wouldn't help DD sleep and actually after a few minutes she'd thrash to get away. I daresay she wanted to get down and be free but back into the cot she went. Other babies are more calmed by it. Some are super stimulated by being picked up - or confused, and are sufficiently reassured by a hand on their back and your low voice. It's also what works for YOU. You need to find a way to be in the situation with her and remain calm, steady and reassuring.
Talking to them is really important I think. They understand a great deal, and certainly tone. I have a very specific tone for talking to DD at bedtime, low and sort of toneless, but warm.