B.O.
Being a grandmother of five grandsons myself, I can imagine that your MIL would never discipline her granddaughter the way she might have disciplined her own children when they were two years old, but might be saying to her, "you are acting like I don't love you any more," or "why do you do/say that -- you know how that hurts Grandma"! That woman needs to realize what's going on. Perhaps you could sit down with her and tell her what your daughter is saying and ask if she has a suggestion. Grandmas love to be asked for advice!! Of course, you are merely trying to make a point. Good luck!