Ewwww, she's eating them? They just have no shame at all do they...No, nothing wrong with her, she's just being a bird...lol.
As far as the toy thing goes, if she already likes to chew paper, I highly suggest you at run to Petco and buy a package of Shredders for $4.99...It's a pack of braided, digestible paper that is incredibly strong and that you wrap all around their cage, weave it through their cage bars, and twist it around the bars, etc. It actually gives them "a job" to do, and my guys will work on it for hours at a time if I really do a good job of wrapping their cages up in it...And it's only $4.99 for 30 feet of it, so it's definitely worth at least trying, and if she doesn't like it then you've not lost much at all...And if she does like it, it will occupy her for hours every day...
Birds/parrots in the wild spend their entire day, every day, foraging for enough food to meet their daily nutritional needs, and the average wild parrot flies an average of 8-10 miles every single day foraging just for their food...In captivity, pet parrots have a bowl of nutrient-dense food 3 steps to the right in a bowl every day...So they get bored, and we as their owners have to give them a "job" to do...and for birds who are chewers and shredders, this "Shredders" stuff seems to work wonders...My Cockatiel isn't a chewer at all, so she doesn't bother with it...But let me tell you, my Senegal, my Quaker, and my Green Cheek go to town and could care less what I'm doing for the rest of the day after I wrap their cages up in a new package of it!!! They don't even fly over to me to get food that I'm eating...i'll wrap their cages up in it (and they try to attack it while I'm wrapping their cages in it), and they don't even come out of their cages, their doors are open and they either work on it from the outside of their cage, or they work on it from the inside and don't care that the door is open...So i'd give it a whirl with Tootsie...
*By the way, what kind of Love Bird is Tootsie? She's beautiful!!! I don't know a whole lot about Love Birds and their mutations/colors, I've never owned one myself and have only dealt with the ones that come into the Rescue I work at...But Tootsie is just gorgeous!!!