We have been very lucky, my MIL is a family daycare mum (has been doing it for 20 years) so DD goes to her two days per week (the rest of the time she is home with daddy). It's nice because she gets interaction with other kids her age and also grandma's attention
We still have to go through the regular family daycare scheme, even though it's MIL, so the childcare benefit goes through properly. We had arranged with MIL and her daycare scheme for Emily to go to her while I was pregnant. Waiting lists really depend on where you live.
If MIL could no longer take her, my preference would still be family daycare, especially for a baby.
They are closely monitored and have to do activities with them during the day. It's nice for little ones to be in a family environment too I think.
MIL has had quite a few kids over the years who have become almost like family - ones she had from 6wks until they started school. That can be difficult as they can get VERY attached being in such a small one-on-one situation, so when they move on that needs to be handled carefully.
Good luck in your search!