Start challenging him - "put her down, you need to respect her boundaries and she has said no", "why are you so worried about her toileting, it's bordering on unusual now?". Subtly let him know you're on to him
Totally agree, but OP needs to be prepared for him being angry or trying to undermine her by making her out to be stupid/paranoid because he is a manipulative, abusive twunt. Abusers often up the ante when challenged.
OP, you need a few lines ready, then go for the broken record method. So, you say"We're teaching her it's OK to say no to hugs and kisses" (or whatever). He says, "That's stupid, in my day etc etc". You're ready with your response: "Well things are different now" and just keep saying it.
He may directly ask you if you are accusing him of molesting them. Be ready for that - if you don't want to confront him directly, say something like, "We're teaching her the same with everyone - it's OK to say no to hugs".
Basically play it through in your mind and have a plan with a few lines ready, so it's harder for him to undermine you. Good luck - you are being an amazing Mum by protecting your DDs 