When you have an employee who places herself above all others, it is time to put her in her place. This type of employee poses questions for managers because her behavior emanates more from personality than skills, and this makes the problem more difficult to solve.
If you try to somehow change her personality, you will get nowhere. At the same time, if you focus on her actual behavior, the likelihood of having a better outcome increases significantly. The next time you either see her act condescendingly or you receive word from others that she has again gone arrogant, you should meet with her as soon as possible, describe the specific problematic behavior, spell out the kinds of problems that are associated with it, demonstrate a more appropriate way to act, and then let her know the consequences associated with treating others condescendingly.
It is excellent to have an employee who has strong technical skills, but technically speaking, you have an employee who is failing in a substantial portion of her job. She needs to leave her arrogance at the door, or ultimately she will be shown the door.
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