I am usually loathe to doubt an OP, but I really hope this sorry story isn't some kind of device to invite others to share similar experiences for some kind of journalistic gain.
There is so much about the OP that is sus, not least the reaction of the DH. If he was estranged from the family, he may feel powerless in the situation.
But the OP says they live together, so unless he is not quite the ticket, his reaction just doesn't sit right.
There has to be some deep trauma or psychological issue for the OP to not have bonded with her DD, but her DH would not have shared these experiences.
Also, if this is true, the OP needs to decide who has parental responsibility for the child.
This can be done with a private court order and does not have to involve social services. But without it, the granny will not be able to sanction medical treatment, or schooling or take the child abroad. If the child is to be brought up by granny, they need to sort this out.
Yet the OP says she doesn't have any concerns with the care arrangement.
She needs to stop detaching from her responsibilities and start attaching.
(And if she is from the Daily Mail, as her 'overbearing and interfering social worker' statement suggests, she can quote me on that.)