I let my kids cosleep until about 2 1/2 years or so. We're transitioning my 3rd out of the bed now. He has always napped in his port-a-crib (we didn't even bother setting up the real crib this time, as we realized that we wouldn't really be using it) and I put him down there at night when he goes down to sleep, and have always just picked him up and brought him into bed with us the first time he woke up after we went to bed. At this point, he's sleeping through until about 5 - 6 am, so that's when he comes into bed with us. I really like that method because it really is happening without any drama for him, and frankly, he can keep coming into bed with us in the morning until he doesn't want to anymore (the other two stopped doing that sometime between 4 and 6, with the occasional morning snuggle whenever they need). Sometime within the next year we'll be transitioning him to a bed in the kids room and moving my oldest into his own room. Anyway, with my daughter, we put the toddler bed in our room next to our bed, and put her down in it, but didn't fuss about it when she moved into our bed with us in the middle of the night. It was a process, and took somewhere between 6 months and a year, but she moved rather painlessly into her own bed and then into a room with her big brother.
I highly recommend doing it in small steps. No, you haven't gone too long. If you like sleeping with your baby, there's no reason to stop now -- you can transition her out at any point. A good first step is merely to get her comfortable being put down in the crib... try for naps first. And once you've got it so that she will sleep there for a little while, pick her up the first time she wakes and bring her in with you. Eventually, she just won't wake and then will spend the night in her crib.