Use lower dose or stop minoxidil?

Thank you for your question.  Rogaine 2% has not been shown clinically to be very effective for hair follicle stimulation. The minimum concentration recommended is 5%.  You should use is twice a day and may take up to 3 months to show results(mostly in the crown area).  Initially you may notice some increased shedding of hair with Rogaine use but this is normal. For hair loss in the temporal or frontal hairline areas if that is your concern you may want to explore other options(not necessarily grafting)  with a board certified facial plastic surgeon.

I am assuming a doctor gave you the diagnosis of telogen effluvium and has discussed the many causes. Even though you may see initial shedding with minoxidil use, both men and women should use 5% and try to push through this first phase. The fact that you are seeing new hairs is a very good sign. As new hairs grow out, the old ones will naturally shed.  It will take many months to recover from telogen effluvium also assuming that the cause of it is identified and corrected.

One would really need to know more before determining if you should continue or not. I'll assume that all potential correctable triggers of telogen effluvium are normal - you iron, thyroid, zinc are normal levels, your diet is good, and you are on no medications that trigger shedding. Minoxidil triggers both shedding and growth in the early stages and shedding can last 2 months. See your physician if shedding persists.