I guess "demo" was the wrong choice of words. What it would be is recording songs that may or may not be used for release down the road depending on how comfortable she is with how they turn out, and how comfortable she is putting her own work out there for the public. Much different performing covers than your own stuff. But, like I told her, I believe her original stuff deserves a chance to be recorded at least, even if it's just to share among family and friends, and if she decides to do a small CD pressing later, great. I had forgotten that she has a "she-shed" type building, which is maybe 15x15 that works as her art studio/guest room if family is over, so that should be a perfect setting for this type of recording.
I do use inexpensive Chinese mics for most of my work both as a taper and a home recordist of music.
Which mics are they out of curiosity? Are you content with the results they produce?
EDIT- Anyone have opinions on the Teac ME120's? I see a pair for 100 bucks in YS.