A new photo showing the face of the murdered child has now emerged, after being uploaded to Facebook in August 2008 by an Adelaide woman.
Several media outlets are reporting the woman is believed to have been romantically linked to a man accused of killing Khandalyce's 20-year-old mother Karlie Pearce-Stevenson, who's believed to have died in December 2008.
Daniel James Holdom, 41, did not apply for bail when he appeared before a court in Maitland, NSW, on Thursday and it was formerly refused.
He has been charged with the murder of Ms Pearce-Stevenson, five years after her remains were found dumped in Belanglo State Forest, south of Sydney.
Police believe the young mum died some time between December 14 and December 15, 2008, and that her child was killed later by persons so far unknown.
Khandalyce's remains were found inside a weathered suitcase in July this year in Wynarka in SA, more than 1000 kilometres where from her mother's remains were discovered in 2010.
SA Police declined to comment on Friday on whether the woman was assisting with their inquiries.
"Investigations are rapidly evolving into the death of Khandalyce," a spokeswoman said.
The woman's Facebook page, which was seen by AAP before it was disabled on Friday morning, revealed an album of photos dated August 2008 of a car show that included two pictures of Khandalyce, one of which was taken front on.
Earlier this week police revealed Ms Pearce-Stevenson's identity, bank account and mobile phone were used for years after her death to mislead family and defraud social services.
SA Police also revealed a woman in a wheelchair had impersonated Ms Pearce-Stevenson at an interview with Centrelink in Adelaide in 2010.
It's estimated up to $100,000 was taken from the murdered mum's bank account between late 2008 and March 2012.
In September 2008, Holdom, who was then aged 33, was behind the wheel of a car that rolled on SA's Stuart Highway about 55km north of Marla, in the state's far north.
A seven-year-old boy and a nine-year-old girl died in the crash.