My daughter is a panic-er.. it took me a long time, and a LOT of patience to get her to where she is now (shes 6yo, w/t/c and popping a small pole)... but to be fair, the main contributor to her progress is her pony (thank you ol girl!).
Patience is the way forward, and often I found that the less reaction I gave the situation, the less of a display she put on. For a while DD would go into fits of tears if the pony would shake her head - pure panic that she was losing control. If I reacted to the situation, she was worse than ignoring the situation and putting the focus elsewhere. She got into a strop, I concentrated on a game or bringing her attention elsewhere. Games were a HUGE impact on her confidence, it took the intensity of a lesson away and made it more enjoyable.
Time will be the biggest thing, we all progress at different stages and different speeds.. sometimes it's hard for us who are older to remember that.
Best of luck with her! :)
Stop for a minute, open your mind, learn. You may not agree with what I say, I may not agree with what you say but we will both learn something new.