Thanks for the photos - they are tremendously helpful! Really, I finally feel as though I understand what is going on!
So, there are a number of things that may be causing this. I would divide them into 2 categories:
1. A problem that is within the eye, and the dog is rubbing and causing the hair loss, or
2. A problem of the skin around the eye.
Let's first address the primary eye problem. If your dog were my patient, I would do a complete eye exam including a Schirmer Tear Test and a check of her intra-ocular pressure. The first is to check for Dry Eye (keratoconjunctivitis sicca) and the second is to check for glaucoma. Here are links with further information:
If the problem is not a primary eye problem then I would consider primary skin problems. Around the eye, Demodex is a possibility and it is good that you have treated for that. Other possibilities are a yeast infection (Malassezia is the most common) http://www.peteducation.com/article.cfm?cls=2&articleid=321 , or a fungal infection such as ringworm http://www.peteducation.com/article.cfm?cls=2&cat=1557&articleid=471
These things are treatable, but each requires a different medication. So in order to know how to treat her, your veterinarian would need to do some tests. As I said, I would start with they eye (especially since you said it went milky at one point), and then check the skin around the eye.
So, although I can't tell you exactly what is going on with your girl's eye, I hope that I have given you helpful information on where to go from here. If this *has* been helpful, please hit the green "Accept" button. I will still be here to provide more information if you need it!