ok i would move out that way you have your own home with your own stuff.

but if you cant than to be honest i would just give in. i have a lot of problems with My IL's but in the end its their house so it would be rude to throw it back at her. and i agree with your partner its free. what if your DD loves teddies and wants to cover her room in it.

all mum's and mil's stick their noses in where its not needed. just go with it life is so much happier.