Your wife can "visit" during the process...I would recommend along with many others here, to file an outland application thru Buffalo, as it is so much faster, even if she is with you in Canada. You can most likely have your PR status before 1st stage approval with the inland application. The other recommendation would be to file for Canadian Citizenship for your daughter, as she has that by right of birth seeing as you are a Canadian citizen.
I also recommend reading the first post in the forum "spousal sponsorship" Leon did an amazing job covering a lot of information and situations that will most likely answer a lot of your questions if you are just beginning the process...