L.S.
We do time outs for hitting. With a 20 month old I would suggest having a naughty chair and when she hits get eye level with her, keep it short and simple by saying hitting is a no-no, place her in the chair for 2 mins. At this age I would stay in front of the chair and wait the 2 mins out with them but wouldn't carry on conversations or allow toys. Eventually she will get the idea. It's also normal for her to be going thru this stage. This is when they start testing the boundries so you need to be consistant with whatever you choose to do.