In March, Richardson firefighters found Schlosser walking down the street at 2 a.m., according to the Dallas Morning News.
Her attorney told the Dallas Morning News, she had been free on an outpatient maintenance basis, until recently had held down a job and had been abiding by her treatment.
Still, he told the newspaper he can't disagree with a judge's decision to send her back into a state hospital.
Schlosser was arrested in November 2004, after telling police she used a kitchen knife to cut off her 10-month-old daughter's arms. She later told psychiatrists that God told her to do it.
Schlosser was found not guilty by reason of insanity in 2006 and was sent to Rusk State Hospital where she received treatment until 2008.
She has two older children she is forbidden from seeing, a condition in her 2007 divorce decree.
Schlosser was formally ordered back to Terrell State Hospital Thursday.
More: Dallas Morning News