So you are dependent on your MIL for where you live and childcare. That's a very un-balanced kind of relationship for an adult - not sure where you live or what your culture/background is, but I would find it hard unless the set up was kind of separate (living quarters) and your husband supported you and there were boundaries. Doesn't sound like that's the case - not sure from what you've written here.
When you're upset or your MIL is being 'nasty' or taking out her revenge, and you talk to your husband about it, what does he do? If you are trying to please your MIL constantly, what about just being yourself and not trying to do everything her way? Yes, it's her home, but surely you are the head of your little family - you have the right to do things your own way. So long as you are respectful (as you would be towards anyone else) and mindful of her, I would not go out of my way to please her. Maybe change your approach.
I can't tell how much of this is cultural - and if you just stood up for yourself, how much of this would resolve. Obviously, the best thing would be to move out and get your own place. Your daughter could still go (I would say part time because socialization with other kids is quite important at a certain age) to grandma's house. If your hubby doesn't want to go far and is close with his mom, live nearby. If he won't agree to all of this, then did you know this going in? It's hard to suggest things without more information.
Hubby should be the one to intervene if his mother is being really unreasonable - that's how it typically goes. However, you can totally stand up for yourself (and should) if she is being disrespectful towards you. I would stop trying to please her though. A grown woman should not put up with this kind of thing. It's not good to model that for your daughter. You wouldn't want her to do the same for her MIL.
Without knowing more, it's hard to make suggestions. To me, there are some simple solutions here. I know I could not live with my MIL - she doesn't respect boundaries, and I couldn't handle always having to address that (it would be draining). Walking away is and not responding to someone's upsets can be tiring if it is continual - and I don't know if she has issues. Your husband and you need to communicate, and he needs to understand how tired and frustrated you are. Start there. If he does not support you - then that's more of a marriage problem than a MIL problem. Good luck