Show her how girls masturbate.
From Create Your Own Story
"Girls are a bit tougher than boys, but I can try to show you."
You lift Jess up and set her down on your left leg. Spreading her knees apart, you grab her hand in yours.
"When you masturbate you would want to go everywhere. You can go up and down..."
You move her fingers along the length of her slit.
"You can go side to side... or in circles..."
You push her fingers against the top of her slit and press into her clit, rubbing it thoroughly.
"You can even go inside..."
Pressing her hand down you guide her fingertips to her tight hole, poking at it lightly.
"Really?? I would go inside? But doesn't that hurt?"
You nod your head. "It can at first. But most girls love it. And that's how babies are made."
She nods in response, realizing that she already knew that important piece of the puzzle.
"If you like I could have Julie give you a demonstration."
"Okay!" Jessie hops down and grabs her towel, quickly wrapping it around her body. She then jumps back up into your lap, pressing down on your cock with her toweled butt. You can feel the length of your shaft push up between her butt cheeks, the thin towel doing little to mask the shape of her ass.
You lean forward and turn on the monitor back on. Julie is straightening herself out as she appears onscreen. She was obviously having a bit of fun while 'secretly' watching you. You explain to Julie (for Jessie's benefit) that your daughter wants to know about masturbation.