MIL - what to do?

I ve always had a good relation with my mil. She is kind, generous and in general she s always helped me in my marriege with my husband. However, since i became a mother, i am starting to get so annoyed with her. She is so controlling that i feel i am going to explode at one point. She keeps telling me the baby is not a toy not to dress her up, that she is too cold or not to take pictures at this age. Once we went out at 4 and came back at 11 and she told me you guys are torturing my baby. I am trying so hard to keep my calm but i am so angry inside. She never e en changed a diaper but she is always giving advice and she is so jealous of my mom who helps me a lot with the baby. Once she told me that in general children are closer to the fathers side and this is the right thing. When she told me at 2 mo to give her water i said no, and then she told me what do u know abt babies!  I told her i know because i read! These r just a few examplesof what she says on a daily basis. I am so fed up. I dont want to fight with her but she is not HER baby, it is my daughter! And i will raise her and educate her not her! I feel like i am keeping everything inside and at ine point i will colapse and explode. I want to deal with this in a way to not affect our relationship or my marriege.  :(