First off, let me start by saying you are a wonderful mother. Secondly I know what your daughter and yourself are going through. But especially Keely. My mum did not do a very good job with me when I was 10 and going through the same thing. It was horrible for me becasue I was alone and made myself go to school everyday. Anxious or not. Forcing myself to be there and to just 'cope' with it, did not work. In the end I ended up skipping. I wanted to stay in class but couldnt and ended up thinking of a million excuses to go home or to just walk around town all day in my uniform with my backpack, becasue my mum would become mad at me if I went home. After a while it became too much and I didnt go to school or leave the house for months. I was house bound and my mother was angry at me becasue I couldnt budge out of the front door. We went to many doctor appointments and had multiple tests but of course they were all inconclusive. The one thing that helped me cope during one of my panic attack moments was my phone. Back then it was a cheap nokia that barely had colour, but I was able to distract myself with it when I felt ill. Im not sure I too, agree with the punishment theory for this specific anxiety disorder. We rely on things that symbolise relaxation and distraction. Take something thats close to us away and our anxiety could intensify, knowing that object is gone incase we should ever need to use it. There is something about disciplining her on doing something that she cant help very well that doesnt seem right to me. It seems like a very negative technique. Sooner or later she could suffer in silence in fear of being punished again. It may sound like a good idea accept this is what I did when I kept getting in trouble for coming home and having to put up with it felt like someone was holding me down constantly. It was very forceful in a way. To this day I am still emetophobic so it obviously didnt work. Exposure therapy is a good technique although it seems to me if her anxiety is great in town and away from home, but grows when she goes to school, then its the school yard thats making her fear develop. Maybe keep concentrating on that becasue it is a scary place to be when you're anxious. Im no therapist but I can relate to your situation so well. If I had a chance to go back in time and figure out what would of helped me with my fear, it would be maybe a reverse of what you're doing now. Instead of talking about being grounded and taking her things away, give her something to look forward to. If she can withstand 2 hours, you can go shopping again, or cook a delicious meal at home (if she doesnt like going out to eat), do her favourite activity. I know when I had something to look forward to and I wanted to go home, I just concentrated on that and it got me through the day. Knowledge is also a powerful tool. I learnt all about stomach viruses and bugs and how to be safely hygenic and recognising symptoms of indegestion and IBS compared to that of an illness, (because we're always feeling sick!) knowing all about how the body works and when it needs to be sick allowed me to do a lot of positive self talking and reassuance to myself when I began to feel how she does. (As weird as that may sound.) Im sorry if I rambled on but you're doing a very good job with your daughter in trying to get though this with her. Your being very empathetic and understanding. I wish my mum was like that.