Daughter and Dog Torment Each Other?!

Macy has recently started taking things away from Rachel when she is playing. I never expected my dog to be quarreling with my daughter, but these 2 sure go at it! A few examples... I was curling my hair and I hear Rachel yelling out. I come out of my room to find Rachel look at me, then look at Macy and yell again. I look between Macy's paws and find she has taken Rachel's toy. I proceed to swat Macy, say no and give the toy to Rachel. A few says later Rachel had her paci in her mouth while sitting on the floor (The paci is an occasional thing. When she sees it laying around she gets it and will basically just "chew" on it.) Macy is never too far away...I happen to look at the exact moment Macy comes nose to nose with Rach...Macy then quietly turns away from me...she had taken the paci right out of Rachel's mouth! I absolutely couldn't believe it! And obviously Rachel doesn't like it! Another time Macy took her toy, Rachel hit the dog on the nose and just crawled away...I am beginning to wonder how much kids really pick up what we do. When Macy took something of Rachel's she got yelled at and was swatted...Is Rachel yelling at Macy and hitting her as to give her a swat like I do?! Or maybe she will just try to get even!... Below are pics of Rachel playing with 2 of Macy's favorite things. The food bowl and her toy! She may be learning to punish the dog as Momma does, but she gives her a taste of her own medicine too! :)