Well, now it's more than six months later and you have taken her out of school. What is it you want to do at this point?
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I don't think I understand your situation. You have any number of things you can do regarding the mistreatment of your child at school. First, you should deal with the different levels of school administration. If that doesn't help, you could speak with an attorney about legal action on behalf of your child against the school.
If you decided to home school, you must comply with the rules about home schooling. If you do so, there should be no problem. Your comment that the school indicated that the child would not be released to you is troubling. Schools know they cannot keep a child from the lawful custodian. This makes me wonder if you were the custodian at the time. If you were, I assume you are now home schooling your child or have her in a different school or classroom.
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