I do not have a Canadian child, but if you do include her there will be a section in your application where you will be asked for her nationality details. Here you can mention that she is Canadian.
They should be exempt from paying application fees and doing medicals.
Others suggest that they must not be included.
These may help you:
http://www.canadavisa.com/canada-immigration-discussion-board/canadian-child-in-pr-application-t450629.0.html
http://www.canadavisa.com/canada-immigration-discussion-board/canadian-born-child-need-to-include-in-this-application-t326580.0.html
Regards