My daughter has an ipod touch, which I connected with my email account.  Now I have an iphone and we would like to separate the accounts.  How do I do this without her losing everything that's she's downloaded and purchased?

My daughter's ipod touch and my iphone are are the same account.  How do I set up adifferent account for her without losing everything she has purchased and downloaded?

To keep from losing purchases you will both need to continue sharing the Apple ID for purchases.
I would reccommend you both create new Apple IDs for iCloud, iMessage and FaceTime and keep the current one to share purchases in the iTunes & App Stores.
Use shared ID here:
Settings > iTunes & App Stores
Use individual IDs here:
Settings > iCloud
Settings > Messages
Settings > FaceTime
Settings > Game Center

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