What your daughter wrote is fine. 'Candy' can either be singular or plural, it can refer to a specific type of candy or candy in general, and it can be either countable or uncountable.
So, 'My favorite food is candy,' is how I would say it in America. In the US, we rarely use 'candies.'
Also correct:
'Various types of candy'
'An assortment of candy'
'I like candy of all sorts'
'I bought five pieces of candy, but I didn't eat it all.'
'In my life, I have eaten a lot of candy.'
'I want a piece of candy.'