What would you do????

My MIL begs to watch our 5 month old daughter. The last time she babysat, she called me 3 hours in and said the baby wouldn't stop screaming, but she didn't want me to come get her. My daughter ended up screaming herself to sleep and slept for 14 hours straight! This obviously upset me but I gave MIL the benefit of doubt and we let her babysit for a long overnight. She had her about 30 hours. She is a smoker, so I asked her to stand on the other side of the yard when my daughter is outside. Well we pull up and she is standing within 5 feet of my daughters stroller, holding a cigarette. My husband told her that it's too close and she had the nerve to argue with him! My husband finally said " I don't want you smoking around her. I'm telling you what I want regarding my daughter" then she backed down saying "ok" with an attitude. Next, I asked MIL when the last diaper change was. She said "I JUST changed her.... maybe an hour ago." An hour ago isn't JUST changing her, but anyway.... I check diaper. It's soaked, there is poop and I noticed a small rash. We cloth diaper so a rash is rare, but I treat it. The rash keeps spreading day by day and it turns out to be a YEAST RASH! Now I know it happens but I know this happened because my MIL let her sit in dirty diapers. I honestly don't want her watching my daughter again. I feel like she would deny any neglect so I don't want to bring it up.... but I need some advice on how to handle this. What do I do????