So correct me if I'm wrong but this is not your dog?
If it's not your dog, you can't really force her to face this fear. And this fear isn't irrational, the dog does have a reason.
In my opinion, dog "phobias" are completely relatative to leadership on the humans part. A calm, confident leader, will put a dogs mind to ease.
My APBT was attacked by a GSD and it was very scary. Does he have a fear of large dogs/dogs in general now? Nope, even though he would have good reason too! He knows that, I would never put him in any sort of situation that may cause him harm.
Desensitizing the dog is an idea. But beware. Any more bad experiences in the slightest could seriously affect the dog.
If you do decide to force him into a situation that he doesn't want to be in, make sure that the little dog is totally, 100% trustworthy. Off leash meetings are also the best way to go. On leash a dog is quicker to fight than "flight". It also forces eye contact which is a dominant behaviour.
Off leash in an enclosed area is IMO, the best way to introduce dogs. This way their normal body language can be interpereted properly. Also, off leash, if a dog feels uncomfortable they can move away. On leash they cannot. A lot of a dogs body language is skewed on leash.
And no baby talk! People forget that YOU are the leader! The leader is supposed to be calm and confident. Not worried, scared or full of fear. Stern, authoritative voice is the tone that is most calming to a dog NOT baby talk.
Good luck
Smalldogaphobia 
