Start celebrating holidays, beginning with Halloween.
You don't even have to go whole-hog with ghosts and witches and pumpkins. I simply had seasonal decorations: a bale of hay, some decorative gourds and some colorful corn around our front entrance and the gossip went WILD within the Congregation™.
For Christmas, don't do lights or a tree, but put pictures of snowmen and snowflakes all over your house. Again, seasonal decorations, but nothing overtly from False Religion™.
In springtime, you can do flowers and baby animal pictures instead of Easter stuff.
In the summer, if you live in the USA, decorate in red-white-and-blue, without using the American Flag. I live in Canada, so I had red-and-white everywhere rather than having a Canadian flag - I even made sure my flowerbeds were in red and white, so I could say confidently that I was just going with a red and white theme - it had nothing to do with Canada Day.
Your JW Friend™ will start questioning what you're doing, and perhaps accuse you of celebrating holidays. You can counter with the fact that you are enjoying the seasons and then you can get offended that she's trying to tell you what to do in your own home, with your own money and impose her Conscience™ on you. That works every time. She will start withdrawing, and unfortunately that means your daughter may lose her friend too, but there are tons of other children who will be lots more fun for your daughter to play with.