I agree with the others - don't allow this dog in your house until your daughter works with her dog on reducing his aggression, and I'd keep them separated when she does come over.
As for punishment, I think it varies from dog to dog. Ronin cannot be punished physically, it's out of the question. If he's doing something wrong, I call him to me, problem solved. If he continues, I warn him in a low, guarded voice. If he still continues (or if he's doing something that is worse) he gets yelled at... that's punishment enough for him - he'll stop what he's doing and slink over to me, sufficiently punished.
Ilsa is a completely different story. She has always been a very, erm... snarky bitch. Yelling and warnings have no effect on her, nor does tapping or light swatting. Her punishment is this: if she's doing something wrong and ignores my warnings, I walk over and grab her, *lead her away from what she's doing*, and make her lay down - by herself. She is allowed to get up shortly after and gets a cookie and petting (to reward her for staying put). But that's really the only thing that works for her.
Aggression is a completely different issue though - I wouldn't even begin to advise how to fix an aggression problem... that's a question for an expert!