MIL scare!

Kiana
So I love my MIL but she lives with me and my SO and they were talking about how she doesn't use the dining room table for puzzles anymore and she said she doesn't want to start a puzzle because the baby will be here soon and I say that it's the perfect time then for you to start a puzzle if you're gonna be busy when the baby comes. Then I thought wait a minute this is MY baby and I'm the one and my SO is the one that will be taking care of the baby MOST of the time.. sure she will get to hold and see the baby but most of the time the baby will be sleeping, eating( I'm breastfeeding), and will have awake times also but not for long (im talking about the first couple of weeks) so through all of that we will be doing mostly everything and most she can do is change diapers sometimes and hold/bond with the baby sometimes during awake times. So after realizing that I say "well what do you mean you'll be busy (like it's her baby and will be doing so much that she has no time for anything) I'm the one that will be busy" and she says "I don't mean no harm but I'm gonna piss that baby off and hand it to you when I'm done" .... I reply jokingly (but I'm very serious) "we gone fight then". OK i don't know if I'm just hormonal and overreacting but she will not be disturbing my baby's sleep and feeding times (especially when I am first starting breastfeeding) and I don't know if I'm being selfish but I do not want to be limited to just  being able to take care of my baby I want to be with my baby during awake times .. I want to have just me dad and baby times. Like I'm sorry but this is our baby and you will not disrupt our spending time with our baby I'm not saying she won't ever get to spend time with the baby but I am saying that when she does spend time with the  baby it will be under our circumstances and  when we say that it is a good time. NOT WHEN SHE SAYS SHE wants to .... 
AND! When she was talking about a conversation between her and a friend at work about my going into labor and how I'll handle it. She had the nerve to say that I won't feel a thing during labor because I'm going to ask for the epidural right away... 
Mind you that I am all for natural birth I'm strongly against any type of medication for various reasons and The only reason I'm giving birth in a hospital is because my hubby wanted me to and I agreed to let him at least choose that but I'm the type of person who will be crying and screaming in pain and not take pain medicine. I could have the worst headache and I won't take anything. I believe in my body and I know I can give birth without medication and how dare her to belittle me like I can't take it.. it's people like her that encourage epidurals and give off a negative vibe during labor .. I'm so pissed and worried also I do not want to have that strong of a conflict and environment when my baby arrives what do I do? Am I overreacting? I really do not want her to be over bearing and acting like she needs to be all over the baby and me. And trust me I will not hesitate to say no if i don't want her holding my baby at the moment or if she goes to pick the baby without my permission.
I honestly think she's lost her mind you don't go picking up other people's kids without their "ok"