Settlement Visa for Family : Please Help

[ILRHelpNeeded]

I first entered in UK as a workpermit holder in March 2007. My wife and my daughter (age 3 years) came to uk in april 2007 as my dependent.
In september 2008, I got my Tier 1 visa and my wife and daughter got the tier 1 dependent visa.
In November 2010, my little daughter was born in uk.
In march 2011, due to some health and personal issues i have to send my wife and my two daughters back to india.
They are now in india and do not have any valid visa.
I am getting eligible for ILR in february 2012. I am planning for applying in a public enquiry office for my settlement visa application.
Could anybody please advise me how can i apply visa for my family now?

1.Can I apply for a settlement visa for my family along with my ILR application ?
Or
2.As my family is in india, If I have to apply their visa from india after my ILR. what is the procedure for that? Can my family get a setllement visa from india?
My wife and elder daughter were in uk for 4 years and my little daughter was born in uk.