Best way to stop this bullying is to make a written report of the incident to the Principal, Counselor and the teacher in an email. Send the email as an "incident report" and request that future "bullying" be stopped.
Use the word "bullying" and mention that your DD is now "afraid" to go to school and is stressed. If you do not use the word "Bully" and "Bullying" the school may not do much.
Mention that you are willing to meet with the Bully's parents to resolve this and have some constructive way to stop this behavior.
Any further emails should be done on the same email chain so that you have created an evidence "trail".
This is the only way to resolve this. You can send the email up the command line (Area Superintendent, Superintendent) if there is no improvement. Its amazing how everyone jumps to accommodate you once you do this.
- Ask me how I know this