You have such a sweet nightly ritual, what kid would want to lose that? :)
BUT>>>If you need to make a change, it's easy. Maybe not easy, but simple. Just change WHERE to routine happens. I did the same thing with my daughter, we had to get her in her own room. We did the nightly routine: went potty, brushed the teeth, got a drink of water, read the book, turned off the lights, sang a song, cuddled for another silent minute....or two...or twenty...:) Every few nights, I'd cut down the time of waiting until I left the room - always saying something before I left,"Goodnight, I love you, see you in the morning" even if I thought she was asleep. (Sometimes, we still hear things when we are asleep) So she would, on some level, know I was going to not be there when she opened her eyes. After a few months, she was used to the routine, and slowly accepted that I was going to leave the room before she actually fell asleep. It's worked for us. Now she's 5 and has been very good at bedtime for the past couple of years - still same routine, but less time - no fuss! I think the routine helped give her the understanding of what comes next and what is expected - no negotiations. Whatever you do at this stage will help set the stage for her future sleeping habits. Be patient :)
Something else - if your daughter has a real hard time with you leeaving the room when she's still awake, I read where you can do that gradually by first laying with her until she's settled, then sit on the end of her bed for a few more minutes. When she gets comfortable without you right next to her, it will be easier to let her fall asleep on her own. Do you play music in her room? I found that was very helpful. She has an "aquarium" that shuts off after 15 minutes or so. She's had it since her crib days. Now it's in her bed, leaning against her wall near her pillow. She loves that thing.
I could never bear the "let them cry themselves to sleep" thing, either. I know it's common advice, but I like to think my kids and I are uncommon ;D