> He was brilliant at getting the dog to look at him and offering her a treat, but when she lunged or barked he shouted 'NO' at her.
I'm glad you and your girl have made great progress, but I would never, never recommend that anyone do this with a fearful dog.
For one thing, the dog is already in a heightened state of stress, and from that alone is more likely to react. If you then add shouting (or any form of aversive/punishment, anything the dog does not like or gets upset by), you raise those stress levels even further and make a reaction even more likely than it already was.
For another, if the dog starts to learn that when it is in that particular situation, and/or when another dog (or whatever he/she is afraid of) is present, he/she will get told off, that raises the stress levels yet again making reactions even
more likely. Add to that that dogs learn primarily by association - see dog, get told off; so your dog learns that (at least to his/her mind) the presence of a dog is a predictor for being told off (or having an aversive applied if you do that, such as a leash correction or water spray, as examples). This increases the problem because the dog then starts trying to stop the situation happening, in order to avoid being told off: bolting behaviour can begin or worse, your dog can start increasing his/her reactions in a serious bid to frighten the other dog off before he/she gets told off/punished.
And there's another risk. The use of positive punishment (adding something the dog doesn't like: verbal correction, leash correction etc) can
suppress the dog's reactions. Sounds good? It's not. The dog learns that its reactions trigger a punishment so he/she learns not to show them at all until it is too late.
In other words, the dog does not let you, other people, other dogs etc know that he/she is very frightened and feeling threatened until the 'threat' is too close; your dog panics and lashes out. Basically, you find yourself with a dog that attacks with no warnings whatsoever, because it's been punished into not showing those warnings.
In any case, the dog should not be put in a position where it feels threatened enough to react; any work should be done far enough away that the dog is relaxed enough for progress. Putting the pressure on through proximity to the 'threat', and the resulting stress, will actually slow the process down - stressed dogs cannot learn properly.