She dont like that i pick her up out of her cage but she squats down and lets me. so she gets to sit outside of the cage daily though if she wants my attention i was leaving her to innate cause i didnt want her to feel that i am trying to attack cause she is a rescue and i have no idea what the original owner is like
OK I have two rescues that I have been working with since November 2013. Instead of you picking her up all the time, because I sure as heck can't pick up one of my rescues, Lady, a Holland Lop. Put the cage on the floor, open the door and let her out. You pick a small area, and I just posted this in another post, but like the hallway and bathroom. That way, you are in the hallway and she can run to the bathroom away from you if she wants to go to a safe area.
I would get some treats like a little banana, apple, whatever and put it in front of you and that way you would be building trust with her to come to you and start to trust you more. Do not touch her or anything. Let her come to you. I know it's tempting to grab the bunny but don't. Like you said and I know with rescues, we don't know their history. She could have been in a house with kids that wanted to pick the bunny up all the time and it drove her nuts.
Give her a box of hay. I buy the Dunlea Tidy Feeder that goes directly into the cage and isn't a mess and she can eat hay to her hearts content. But she needs hay for her teeth and digestion.
Scrap all the bedding and if you have to put a normal small bath towel in there for her to lay on. If she is using the bathroom in the cage and you are not litter box training her, get one of the corner plastic bathroom containers that sticks into a corner of the cage for her to use the bathroom in.
I hope this helps and you start working on a relationship with her in which she is trusting with you!
Vanessa