Yes, it is your 'fault'

And, thank God, you are there for her. Children need affection when they are young and when they get lots of it, they are happier adults. I have seen that to be true in studies I've read and I believe it intuitively.

There are many historical and cultural examples of parents, mostly the mother, nurturing their children by caressing the childs genitals until late ages and I believe that to be healthy as long as no one 'convinces' the child that that is 'wrong' for whatever reason. Certainly hugs, kisses, petting, and spooning are what children want and what they should receive.

Hugging 'strangers' is not a 'bad' thing. It is not her problem or yours if that is perceived as dangerous. It is societies problem and one I want changed. When I meet a couple with a child and the child gives me a hello or goodbye hug, it makes my day. I am happier and I treat others better all day because of it.

Touching and caressing a child by a parent (Dad's, step in here) is healthy for both the parent and the child and nothing to be hidden or ashamed of.

My 2 cents (but probably not worth that much). Certainly considering I am a pedophile.