Hey man, that's great progress. If she's dropping the bike I can almost guarantee she's coming to a stop with the handlebars turned. Tell her to make sure that for the last ten feet before a stop the handlebars are square and the bike is completely upright.
Next time you're doing the second gear loops around the parking lot, have her work on turning her head. Make the course a big rectangle. Tell her, 20 feet prior to each turn she should have her head turned 90 degrees, looking all the way over at the next turn. She won't do it at first, so keep working at it until she gets it. It's a critical skill. Have her do it in both directions. Most people go better to the left, so tell her not to worry if her right turns don't feel as smooth.
Next, countersteering. This can be a tough on to teach. Once she's turning her head going into second gear turns, have her stop and take a break. Then get her back on the bike (engine off), hold the front tire between your knees and say, "OK, second gear turn to the left, you look to the left, and do what with the handlebars?" She'll try to turn them to the left. Gently tell her no, that's not it. You look left, then lean the bike to the left by pressing on the handgrip and straightening out the inside (left in this case) arm. If she does it correctly she'll end up with the bike leaned, her head turned left, body upright, left arm straight, right arm bent, weight on her outside (right in this case) buttcheek.
Then have her practice it on the second gear turns. If she's not getting it, stop her and have her do stationary practice again. One classic mistake is holding on too tight. She tries to press, but the other arm fights her and doesn't allow the bike to lean smoothly. Show her she can make the bike lean with one finger if she wants. It's not a wrestling match. She just sorta nudges the bike down into the turn with her inside arm.
You may want to practice that yourself, both stationary and on the bike. It's not hard for an experienced rider, but you need to demonstrate it so your actions need to be exaggerated.
Next, slow-speed maneuvers, weaves and u-turns. The course (basically) uses two weaves. A 15-foot (six steps) inline weave and a 20-foot (eight steps) weave with a 6-foot offset. Walking speed, clutch in the friction zone with a little bit of throttle, lean the bike by pressing on the handgrip and allow the handlebars to track into the turn. If she's not getting it stand on the inside of the second cone. As she comes around the first cone say, "Look at me. Lean the bike at me." When she does, say, "Look at the next cone, lean the bike at the next cone." Emphasize leaning the bike instead of turning the handlebars. Buy a can of tennis balls and cut them in half for cones.
U-turns use the same technique. The course starts with a 24'x60' box, then goes to a 20'x60' box. Walking speed, BIG head turn, clutch in the friction zone with a little bit of throttle, lean the bike by pressing on the handgrip and allow the handlebars to track into the turn. Classic mistake is not turning your head far enough. Stand at the back of the box. As she starts her turn, say quietly, "Look at me." You want her head all the way over her shoulder as she starts her turn.
If she can do all those with any sort of proficiency she'll breeze through a class. It will be good practice and it's always better to have a few professionals work with her. They'll probably let her use her own bike in the class. Never hurts to ask.