She's just been found guilty of "inciting religious hatred".
And it actually has very little to do with blasphemy. Loads of kids in Muslim countries call their pets or plush dolls "Muhammed". This has a lot more to do with the Sudanese government wanting to do one over the British government for its criticism over Dafur, as well as the fact that the teacher in question actively encouraged some form of democratic discourse by letting the kids have a vote on the teddy bear's name.
Either way, it's shameful to see the Sudanese government trying to outdo its Turkmen- and North Korean counterparts for the title of Most Ludricous Regime in the World.