After reading what you wrote and that those were her actual words, yes ground her and then some. Especially since grounding her will not be a real punishment. I would say make her find people to do free labor for and sentence her to at least 30 hours community service.
Also be prepared to get sued just for shits and giggles. Small claims is more than likely in both or your futures since so many people are lawsuit happy and their child is the center and ruler of the universe.
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