My dog is in time out

Ah, the joys of having a puppy in the house! :)  We’re trying to keep her out of her crate for longer periods of time – you know, let her be part of the family and all? And she’s actually getting really good about it. Unless there is food involved.  Today, I plopped Preston on the couch with his snack of a cheese stick and sat down to play with pup in front of the couch.  She’s totally obsessed with the food she can see. I repeatedly pull her away, tell her OFF, etc.  I’m trying to engage her in play to distract her but she will not be distracted for anything!  Of course, fun time ends when she jumps on the couch, grabs the entire cheese stick out of his hand and attempts to eat it.  I say attempt because I will not allow her the joy of eating what she has stolen!  :D  So I pull it out of her mouth and into the crate she goes.  You’re really not supposed to use the crate as punishment, but I don’t know what else to do with her. She’s in time out!!