The first step would be to explain to her what dreams are... but how? what I'm planning to say is "Little, strange adventures that happen to you when you fall to sleep but are not real and only happen in your head".

Well after explaining what dreams are, I guess I should give her about 1 month just to get used to remembering them and I'll try get her to tell them to me every morning xD.

After that I guess I'll teach her what lucid dreams are, but not how to have them. I'll also teacher her some reality checks so she can have a lucid dream.

about a week later I'll teach her MILD and I'll explain awareness. I will probably explain awareness as this:
"You know how your dreams "feel" different to real life, you should always feel the feeling of being awake because it is different from sleeping.I just lost the game. Also, always look around at things and try to find anything strange.
Another fun thing to do is to pretend you're dreaming. What would you do right now?"

I'll explain that over a period of time though.

I'm trying to teach her lucid dreaming at a young age so that when she is 10+ she could have a lot lucid dreams. I guess I just want to show everyone how fun dreams are xD