Mitcham woman Sofina Nikat, 22, faced an out of sessions court in Melbourne on Tuesday evening charged with Sanaya Sahib's murder.
Sanaya was found in the Darebin Creek about 2.45am on Sunday, less than a day after Nikat reported her daughter had been snatched from her pram at a park.
Homicide detective Stuart Bailey told the brief hearing that Nikat had made a full admission to police on Tuesday and as a result was charged with one count of murder.
Nikat did not apply for bail and was remanded to appear in the Melbourne Magistrates Court on Wednesday.
Ms Nikat had told police her daughter was grabbed by a shoeless man of African appearance who smelled of alcohol about 10am on Saturday.
She said she was pushed to the ground by the man who ran off with her daughter towards a nearby shopping centre.
She said she gave chase before returning to her brother's home to raise the alarm.