Re: Question to parents.
I would always start with positive reinforcement, before time out and taking things away. Reward her when she doesnt do such a thing. Give her confidence and self believe that she doesnt need to say these things to get attention.
Begin with warnings, max should be 2 warnings and then she gets sent to another classroom/deputy/head teacher.
She perhaps needs to learn how best to socialise with her peers. She might not be aware that those words are not nice. Ask any 5 year old what it means to 'be good' they shrug their shoulders. Perhaps a social skills group with the SENCO or a TA.