Hi, Angie,
Collies have been bred for generations to round up sheep and cattle, by giving them a nip on their heels. Your bitch is clearly trying to do the same with children, since she does not have any shhe to round up!
I do not think that muzzling is the answer. Try a short lead with a Halti
(From most pet shops and many vets), and a firm 'NO' when she even looks at a child. If you wish more specialist advice, ask your veterinary practice to put you in touch with a dog behaviourist.
Walter