I'm so sorry your going through this. I actually thought I was reading about my own In laws.... Mine are just as bad.
Run, run, run... These people are abusive and you don't want your DD to think its ok to put up with abuse. As she gets older, she will see things more clearly, this is not goo for her. You need to make a stand and show your DD what "not to put up with"!!!
If your DH is supportive, that is fantastic. Mine is, but to a degree. I agree with him, go talk to a counsellor as they really can show you things from a perspective you haven't considered before. We go to counseling due to my DH's parents ****. It helps a lot. You would be doing this for you, not them. It will help you.
Those In laws are really retarded!!!