Babies are super sensitive to smell and I know my babies get very fussy around my sister who is a smoker....just a thought.
I don't think it is hurting her but do you kiss her,to you hold her? I am not a smoker and a person that don't brush their teeth and kiss me on my cheek is gross to me and I don't like it. And to be huged by a smoker is still gross even to stand by one. But she can't tell you that even if she was 10 because she might be worried more about hurting your feeling instead of her own feelings.