There's good description of Cherry Eye here.

It is not something to be dealt with lightly, as you see if you read that thread. It is a gland that she needs! I would worry first about getting her healthy from the pneumonia, THEN worry about treating the Cherry Eye. It looks bad, but is not, unlike pneumonia, life-threatening.

I would definitely contact the breeder, she sound like a very sick little pup, and she was when you got her, so the breeder should share vet expenses with you. Any breeder who cares should, at least. Keep all your vet records together to show the breeder copies.