My 7 year pls has forgotten her passcode for her iPod touch. I have put it into recovery and through iTunes tried to restore. But it will only let me also try to update it with iOS 6.1.3 which no longer allows the bypass of the passcode. Can anyone help?

My 7 year old has a passcode on her iPod touch. She forgot it, after multiple attempts at what it could have been, it comes up with disabled etc.....I have tried it in recovery and hooking it up to iTunes (which the device has been previously synced up to) to restore. But the problem I am having is it only gives me the option to update also, to iOS 6.1.3 with the new bug fix which it won't allow you to bypass the passcode. It gets a little into the downloading, turns the iPod on and then asks for the passcode to continue?! I am at a loss as to what to do now, as every forum says put it in recovery and restore. I can't use the 'find my iPhone' app as the iPod is offline. I've tried it on a laptop not prev synced up to and get the same problem. Has any one got any ideas!