My father has an aunt called Millie but her actual name is Melanie so there is another option and if your daughter didn't like Millie, she could be called Mel or Lanie.
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There are alot of people who seem to criticise this name but personally I think its a lovely name. Its 1st on our top 2 names!! We know a baby called Millie so its not uncommon, and personally I dont think of it as an olden name. I would have said that about Alfie before for a boy until my mate called his son Alfie, now I think it really suits a boy. So much so that we wanna call our boy Alfie but cant cause of my mate's son (damn).
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I've read all comments and if I liked the name very much I would definitely hyphenate it (more for birth certificate and school forms, etc.) but just use 'Millie' when you address her.
Millie-Rose = short names are nice, but - Millie-Renae is also nice. (Well, not Millie-Jean ... too much like Michael Jackson's Billy Jean! )
Or any other name that you have on your list that will fit. I think that will get compliments actually and make her feel special!! And not sound like a Granny name. Go with your heart.
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