Since toddlers crawl and put their soiled hands and toys or other objects in their mouth frequently, they are prone to infections. At the same time, an immature and developing immune system adds to the problem. Your daughter may have nasal vestibulitis in addition. Please get her examined at the earliest since this area of the nose and upper lip is known as the "Dangerous area of the Face" as far as infections are concerned. If her runny nose is only on one side, please rule out any foreign body in that nostril. A common viral cold may also be accompanied by ear and abdominal symptoms, as toddlers swallow all the secretions. If her fever and respiratory symptoms persist or worsen, kindly rule out Swine Flu. All medication should be under your Paediatrician's supervision.
There could be a boil inside. Get a ENT opinion taken. Do not ignore her symptoms.