A good digital piano is enough for me (I am not a good player so don't just listen to me:)). I will start my daughter with the one I have. If she showes interest and makes good progress, I will buy a baby grand for her. It is going to look & sound so great in our den:)
If you decide to go with a digital, don't go too cheap. And don't be fooled by the appearances. When I was shopping for mine, I saw another one on sale. That one looked so beautiful just like a real piano and was only $1200. But when I sat down and played with it, I found out that the keys didn't carry enough weight. It didn't feel like a real piano. It felt like a key board. There was a reason for it to be cheap:) I spent more on the one I have which looks bare bone. It doesn't look like a piano. But it feels like one - that's more important.