Dealing with sleep issues is where I'm sooooooo weak when it comes to parenting. One thing I've learned is there is no right answer.
With my dd, I tried the gradual approach. It just did not work. She either wanted it done the way she knew or she would scream and scream. I'm talking ear-piercing, stubborn, never ending, screaming. So I'd get frustrated and end up back to rocking and trying to find that darn binky. I was exhausted because she was also waking up in the middle of the night wanting me to rock her back to sleep. I finally just let her cry it out. Our pediatrician said not to do it until I knew I could stick with it. The first night she cried for about 20 minutes. I cried in the other room. The second night, just a couple of minutes. The third night there was no crying at all. She went right to sleep and that was it. It was like she learned how to put herself back to sleep. By the way, my dh was there, but he let me call the shots because he was weaker.
With my ds, doing it gradually worked. He was rocked and nursed to sleep. First I weaned him from daytime nursing. After he got used to that, it was time to take care of the nighttime nursing. He was 18 months old and would even wake up to nurse himself back to sleep. I knew he wasn't hungry because he wouldn't nurse that long. He had no interest in a binky. I was his binky. So the first night, I didn't want to shock him so I just put him in the bed with me and he immediately wanted to nurse. I talked to him about being a big boy. He did cry and rolled all over me and the bed. I'd just pretend to be asleep. So he did kind of cry it out, but with me right there. But, it wasn't as extreme as my dd. He would cry, moan, whine, etc. He woke up in the middle of the night for a few nights too, and cried and whined himself back to sleep. It wasn't really that bad. A few nights later, he was over it.
So if you don't want to cry it out, give the gradual thing a try. If that doesn't work, don't feel bad about letting her cry it out. I think different ways work for different types of personalities. My dd still has the personality of wanting to just hurry and get something overwith. My ds is laid back and takes things easy.