Her liver is dealing with a form of hepatitis, steatohepatitis, if her fatty liver disease has progressed far enough. Fortunately, by reducing her liver's fatty content, as her doctor indicates, the parenchymal compression (keep in mind fat takes up a lot of space and causes swelling) and injury will be lowered. And, if her liver is only in the very early stages of cirrhosis, her liver maybe able to recover/lower in the fibrotic staging.
Certainly her medications need to be examined, they can cause liver toxicity problems. But just mention her current medications to her doctor, and he'll likely be able to tell you about the various issues.
Liver transplant is an option for her as well but she is likely not anywhere near this point in her disease, hopefully anyway. There is something called the MELD score that is used to determine where a person is relative to getting a liver transplant.
By using her recent serum blood levels, you'll have a feel where she is wrt liver disease/damage. The MELD score of 25 or higher is what is needed to get a liver, depending on where you are at in the country. The liver performs both synthetic and excretory functions, and this score quantifies this.
Overall, keep in mind that fatty liver is a very treatable disease. Work with her doctors and hopefully a solution will present itself. Best wishes!