How do I bypass an iCloud account?

First:

Reset the password for the iCloud account and then

Find My iPhone Activation Lock: Removing a device from a previous owner’s account

Next:

Connect the iOS device to your computer and then restore via iTunes. The iOS device will be erased. Place the iOS device in Recovery Mode if necessary to allow the restore.

If recovery mode does not work try DFU mode.

How to put iPod touch / iPhone into DFU mode « Karthik's scribblings

For how to restore:

iTunes: Restoring iOS software

Setup the iPod again

You cannot bypass that. It is the Activation Lock, an anti-theft protection. She has no choice but to remember the password.

YakovM wrote:

As far as I know, you can skip signing in with your Apple ID (unless you decide to restore from an iCloud backup). Don't you have a skip option when you're asked to sign in?

No, you cannot skip signing in if Find my iPhone was enabled on the phone. There is no way to bypass Activation Lock, the theft-deterrent feature. Hackers have been trying for 2 years without success.

If you forgot your Apple ID password - Apple Support

As far as I know, you can skip signing in with your Apple ID (unless you decide to restore from an iCloud backup). Don't you have a skip option when you're asked to sign in?

You can give her the choice of remembering the passcode or buying you a new iPod Touch. Those are the only options for getting a working device.