Please be careful and let the puppies nurse from Dixie, keeping a close eye on her infected nipple. It is better for the puppies to be nursing from her and snuugled up next to her than anything else. While they can eat mush at this point, mother's milk is best and should continue until about five weeks of age for them to have proper development.
I have had bitches with mastitits and Cesarean section incisions. The puppies nursed and the mothers did fine. Just keep a close eye on Dixie's temperature and let the puppies have their regular milk meals from her while you supplement with mush/gruel.
Sabra - female GSD - born April 30, 2012
Sargeant - rescued senior GSD male/foster failure - approximately ten years old (August 2013)
Max - rescued GSD - Dec 22, 2010 to March 7, 2012 - at the bridge
Sable - rescued GSD - at the bridge