OOC: A crit applies the penalties to both rolls? I.e. is the minimum 1 or 2? Also, since she's Tiny, she doesn't threaten any area, right, so she can't make an AoO period?
Katie, furious that the stupid horse survived her dagger, is out of other options. She'll just go in and attack the horse in melee combat until it's dead. If she starts getting hurt (down to half), she'll fight defensively. If she gets really hurt (0 to 2 hp) and is not doing well, she'll take the draw by withdrawing upwards. Time Compress? Go Katie!