If the crate works then use it, I think it's important that they can eyeball each other through it though. Maybe put something on the top that Precious can jump on to so her wee legs don't go through the bars! (Ooh I'm assuming it's a wire crate)
It doesn't sound like Miley is actually trying to attack as such, just barking and running at her. Showing her who's boss! Lol you may find it gets sorted quickly if Precious manages to swipe Miley's nose!