Ok, so the last 3 nights we decided to grab the bull by the horns so to speak and tackle this.
1st night was pure hell - would not go down, 10pm and over an hour of her standing up in her cot wailing over the side, us picking her up, putting her down, saying 'lie down', shhhh, cuddle teddy etc. Wanted milk 'mi-mi-mi' at 2am, but did not, could not relent, hence the usual performance for another hour or so.
2nd night - have been making daytime progress teaching her about lying down and cuddling teddy, then 9pm and another hour of crying... 4am and an hour, back killing me with all the picking up to lie her down straight, stooping, stroking in her cot - no rocking her to sleep this time! DH took over at 5am for half an hour then she slept beautifully til 7.30!
Last night - went straight down 10 mins after cuddling teddy at 8.30, only picking her up to lie her down 4 times, and with a bit of head stroking in her cot (finally she lay down of her own volition).
Tonight - she smiled, cuddled teddy, reached for her blanket, cried a bit but didn't stand up, heard my voice outside her room and quietened, and 5 mins later DH went in to find her fast asleep.
And yes, the later dinner helps, so does the water instead of milk. I placed a non-spill beaker in the corner of her cot so that she doesn't have to shout for it and fully wake up. Also glad she's found teddy for security. I make sure I involve teddy in the bedtime routine too.
Hoping that someone reading this will take heart from this, as on Monday, I never believed we'd EVER get past the pitiful wailing and glazed teary eyes pleading for milk. Stick with it - yes it's lonely at 4am, but it may be the last time you have to do it (for a while).