We're in the passport getting phase for Ella - US to begin with. Can we apply for a UK passport while she is in the US? Do we do it through an embassy, like I do my paperwork?
Just not sure of all the ins and outs and wondered what you had discovered.

Re: ~*~LouiseB~*~
DD doesn't have a British passport yet. But looking into it I am almost certain that you have to show up at the embassy (or a consulate) to get one (including both parents or with a consent form from your DH). DH just renewed his UK passport from here and it was a nightmare with sending the old one away and wait for a new one. So I would recommend that you just get one when you go back next time and stay more than a week or so. You can even have it mailed to family in the UK and have them forward it. I noticed when entering Europe with DD on her US passport they don't scan it because I am an EU citizen, so essentially they have no record of her being in the country. I guess they recon that since her parents are citizens she is too, despite her US passport :-)
Getting a US is fairly simple but again you both have to show up to 'swear' that you are her parents. Either at a post office or a city council office. Good luck with it!