Honestly, treat it as Lambda, just with a little less range.
If you're not smart you're gonna eat 2C's all day and take 7k.
IB>5A>6B is very strong against litchi.
I'm not sure exactly at what points though, especially since I don't know the notation for her moves. "/
All I know is whatever into the low itsuu move is free FCH 2C if you IB the low hit, and that's been a godsend.
I'll try and pay extra attention to this matchup, so I can give you more valuable input.
EDIT- This video shows just about everything you can do right. lol.
http://www.youtube.com/watch?v=D7rS2Dps66A
Also, the overhead where she has to follow up in the air can be 5A'd out of on block after the first hit if she doesn't jump cancel back, so just throw out the 5A anyway. I'm not talking about the one where she hits you with the staff, I'm talking about this one http://www.youtube.com/watch?v=7QgTo9AbwiU#t=0m59s . She'll probably be too high for 5A > 6B > IAD j.6D, but you can do 5A>6B> IAD cloud or something else, which is almost as valuable.