Notwithstanding what other posters have said about trying to mediate, apologise, go with the flow with the daughter's demands etc., if all that has failed, then court is the correct option.
Contrary to what some previous posters have said about having little to no chance of getting contact, the information the OP gives would indicate that it may well be in the child's best interests to have contact with her grandmother, and it is the child's best interests the court takes into consideration. As such, resuming some form of contact is likely to be the order the court makes.
Every time a grandparent asks for advice on going to court on here, even when that question is in Legal, people trot out the same statement 'grandparents have no rights'...but they, like anyone else who has a relationship with a child, DO have the right to make an application to the court for permission to apply for contact. In fact, these are no longer considered two separate applications as the C100 has a question which asks the applicant whether or not they require permission to apply and, in the vast majority of cases, the matter is listed for a first hearing and the first matter the court deals with is whether or not permission is granted. I have yet to deal with even one single case of a grandparent application where permission has been refused, even, for example, in the event of an eight year gap in contact between a grandfather and an 11 year old child...in that case the grandfather was awarded initial indirect contact and then face to face.
It's not helpful for people to google a bit and then make bold statements that do not reflect reality in the family courts.
OP, if, as you say, you have had such regular contact with your granddaughter for years, you are very likely to be provided with contact going forward. It is not likely to be to the extent that you currently have it (every weekend), but at least you'll see her. I would, however, suggest that you try your best to exhaust all other possibilities first - including apologising and sucking up the fact that you think your daughter dictates to everyone...whilst you may not agree with it, she does have the right to restrict contact to her child unless there is a court order in place.