I understand you're trying to get used to living with a new baby bunny, and she's trying to adjust as well. Because she's young, she is very adaptable to changes to improve her lifestyle with you, including becoming litter trained. First change I'd make is to switch to a large litter pan with actually rabbit litter in it. I suggest pellet type such as Yesterdays News, Aspen pellets or Feline Pine, Carefresh products (I like the simple original or white), or a few safe shavings, such as Aspen shavings. Do NOT use pine or cedar shavings Ever. They are unsafe. Having the hay in, above or near the litter pan is excellent for getting her to munch and pee in the litter box, so hanging her hay above the litter is a good way to do that.
That said, please go into the Bunny Info. sections and read the info. provided in the drop down menus from the blue strip at the top of this page. It will tell you all the basics you need to know to set up your habitat and house for accommodating a new bunny, plus want you can expect. (like, she is probably marking your bf in the pix.) Now is the time to get a good habitat created for her, establish some routines, and let her learn her basics and explore your home slowly.
I'm sorry you didn't get the bigger cage because she will be growing and need one quite soon. In the long run, a one-time investment is less $ than buying a second one in 6 months or so. Can you exchange the current cage for a larger one, or an x-pen now? It might be worth considering. No wire floors, however.
If you think of a cage as her safe house, not as a cage, you will see why she will enjoy being in it for her basic needs: litter, food, sleep, play and relaxation.
So read through the site and check out threads in the different forums, like the Tech. section for posting pix, etc. and you will find many answers to your questions already.