1) At seven months, I feed my puppies only twice a day. Four cups of food sounds like WAY too much! What are you feeding her? Shepherds tend to be fairly slim anyways and I like to keep pups on the slim side because you don't want pressure on those joints. They'll always act hungry, so I judge the correct amount of food based on my dog's body condition.
2) If she has given herself a rash/red bumps/a sore or bloody spot, I would take her to the vet to get it checked out. It's safer all around, and an experienced vet will probably have a good idea of what it is so you know how to treat it. Where does she lic and what does it look like? Pictures?