Two grieving Melbourne parents have come face to face with the woman accused of blackmailing them as their daughter died in their arms.

Days after making a public appeal for the return of a stolen phone containing every photo of their terminally-ill child, Jay and Dee Windross were allegedly harassed by Malaysian national Siti Kamal.

Texts linked to the 24-year-old’s phone number show she demanded $1000 for the return of the device, which she never had.

“The hours that we spent holding our daughter, this woman was sitting in her own house demanding money from us,” Ms Windross said.

“It's despicable, it's disgusting, why would anyone do that? She knew the position we were in. You could tell by the messages.”

The mother-of-two provided bank details for the heartbroken parents to transfer money.

Police used that information to track the woman down, arresting her at a Springvale sharehouse on Friday.

Ms Kamal sobbed in the dock of Ringwood Magistrates Court today as her husband took the stand begging for her bail.

“I just want to say sorry because I didn't know my wife did that, I really don't have idea about that,” he told 9News outside court.

“We don't have the phone. Maybe she just used that for money. That's it. I am still sorry.”

The court heard Ms Kamal moved to Melbourne in September last year, leaving her young children behind in search of a better life.

Jay and Dee Windross lost their 11-month-old daughter to a neurological issue. (Facebook)

“She has two children that are alive, I don't have my baby anymore,” Ms Windross said.

Mr Windross said: "She left her children, we didn’t leave ours for the 11 months we had."

Ms Kamal works as an UberEats delivery cyclist, working around the St Kilda area from noon to 10pm six or seven days a week.

She makes $120 a day and pays $90 a week to hire the bicycle, the court heard.

Her lawyer explained that the couple lived week to week and couldn’t afford to keep up with rent repayments at their Springvale sharehouse.

Ms Kamal surrendered her passport in a bid to secure bail but her husband could not meet the surety required.

Meanwhile, the Windross family is still searching for their stolen phone, pleading for its safe return.

“Anyone that has that phone: I don't have my baby anymore, I can't take anymore photos, I don't care who you are. If it’s been wiped, whatever, we can fix it, I don’t care about the device just the photos. Please, just give it back,” Ms Windross begged.