You are very articulate in describing your situation.
Next, it is your Mom's issues... that has then lassoed ALL of you (you, hubby) and now your daughter. It keeps everyone "hostage" so to speak. It is "dysfunctional", and I"m sure you know that about your Mom.
You HAVE to think long term.... about how you want it to continue. It WILL continue just the same as it always has... unless your Mom changes. Which, chances are slim for that, it is based on hope, not reality.
Next, if anything is going to "change" it has to be on your/Hubby's part... and going forward in your lives, DESPITE Mom and letting her "control" everyone.
Next, I would find a 'real" babysitter... not your Mom, to watch your daughter. That way, that is one less major entanglement... that she will have in YOUR life, your daughter's and your Husbands...and the neighborhoods. Since she has a loose mouth and gossips about your "private" issues and family life.... and it SHOULD be off-limits. Your Mom has shown she has no sanctity for "privacy."
YOU can maintain a 'relationship" with her... but you cannot expect your Husband to do so. He already, correctly, knows about your Mom's M.O. (method of operation), and controlling-passive aggressive behavior. THIS is not healthy... for anyone, you as a child or you as an adult, or for your daughter who is still forming behaviorally and emotionally.
YOu cannot "fix" her... nor everyone. They do not have to change, while your Mom continues to do her damage. Its sad... but you have to have a life with her... on YOUR terms, or by yourself.
You said "she isn't giving me many choices..." Um, why should her "rules" govern you? You are an adult, with your own family and husband and child, now. That is the priority... not pleasing her, as a little girl. YOU are the adult, now. If you continue to replicate the same dynamic you had with her as a child... then the dynamic WILL stay the same. And that is your choice.
We all have choices. But not when it psychologically/emotionally burdens others in our own family. ie: your Husband and daughter.
You don't want to bring those dysfunctions into your own family do you? Or with your Husband & daughter- they are not the cause of your Mom's burdens upon them, she is the instigator. And, be mindful of HOW your daughter will "learn" about this too... as she gets older. You wouldn't want her to learn about misguided parent/child relationships...NOR would you want her to replicate this vicious cycle herself, would you?
YOU ARE NOT BEING A JERK! You are very mindful of what is going on. NOW, it is up to you, to live as you wish... and in the best way for your Husband and daughter. Not letting your Mom govern them too.
All the best,
Susan