I agree with dreamparkingplace that your friend will need to slowly expose herself to dogs in order to overcome her fear. However, there are a few things I think she should do before that.

The first thing is to learn how to meditate, and start doing it daily. Then, learn some relaxation exercises. Do these daily until they are second nature. Remember, that she will be paralyzed with fear, so she will need to be able to relax herself almost automatically. She might also try telling herself daily that she is not afraid of dogs, that they will not hurt her, that she knows what to do if a dog comes at her, etc. (This self talk sounds crazy but it works) Then slowly, expose herself to dogs.

This is coming from someone who has been there. It takes lots of time and patience but the feeling of success at the end is worth it. I hope she is able to conquer this. I will keep her in my thoughts.