J.,
We too had a daughter who was addicted to her paci. Hers was called a 'bubba'. We just couldn't seem to shake that naptime and bedtime need for it. It was such a soothing comfort for her.
We secretly threw all of her pacifiers away until there was just one left. A week or so before we took any further action, we prepped her; "Oh, Sweetie ... this is the last bubba. You're a big girl now, so when he gets too old, we'll have to say 'goodbye' to Bubba." Every night, we'd talk about how she was getting to be a big girl and how it was soon going to be time to give the bubbas up.
Then my husband (In a move that STILL wracks him with guilt) took a pair of scissors and snipped the end of the bubba.
"Oh dear," we said, "Bubba's broken. We'll have to say 'goodbye'." We let her hold it while sleeping, but discouraged her to put it in her mouth, saying that it wasn't safe - that the rest of it might come off while she was sleeping. She slept for the next few days holding Bubba and every night, my husband would cut off a bit more.
When we finally threw Bubba away, there were some tears but it wasn't as devastating as we'd expected. It was more of a "I miss Bubba. He was a good friend" And I think it was US more than HER that was stressing about it.
If that doesn't work for you, I've heard people using a "Pacifier Fairy" story just like the tooth fairy. -- much less scarring than cutting the bubba, I'm sure.
Good luck to you,
J.