singaindia, I would recommend that you visit the musical theatre and theatre/drama forums here on CC.
http://talk.collegeconfidential.com/musical-theater-major/
http://talk.collegeconfidential.com/theater-drama-majors/
Even if your daughter isn’t interested in majoring in either of those, that is where the most accurate information is available for those seeking the opportunity to participate in theatre in college. I believe there’s also a dance forum but can’t speak to the information shared there. Many of the students and parents who participate in the MT and theatre forums are looking at BA programs where the major will be in an academic subject but where the student may also participate meaningfully in the arts.
Some of the schools suggested in this thread, e.g., SUNY Purchase, NYU, Emerson, Pace, CMU, etc. are not what you’re looking for, from the information you’ve given. These are very selective audition-based programs for kids who want to pursue a career in the arts. While it’s true that NYU students who are not Tisch majors may take introductory courses in drama, dance, etc. in the Open Arts program, those offerings are very limited. They will also not allow for a student to participate in productions at Tisch.
There are a number of excellent BA programs at selective schools where a student can get very good academics as well as good opportunities for participation in the arts. Unless your daughter is interested in studying/training to be an actor, or if she is undecided, a BA program is her best bet.
This isn’t true for all students. Many Tischies double major in the College of Arts and Science and do, indeed, get the opportunity for a liberal arts curriculum. Although, as I’ve already state, this isn’t what the OP is looking for in a college, as far as we can tell.