Urgh, that sounds horrendous.
When I was younger I was a lodger and the landlady was really over friendly and had very little going on in the way of boundaries. She used to come in my room and do my washing, or do things like make me dinner (not part of the arrangement) and I'd come home and find a cold plate of dinner staring at me accusingly as I'd been out for the evening. 'Nice' stuff that was actually very controlling. I told her to stop going into my room, making me dinner etc.
She had a cleaner a few times a week and I used to tidy up after myself but didn't go mad on cleaning (there was nothing to do!)
I used to walk her dogs for her every day though (she had a disability which made that hard for her).
Finally, one day she exploded at me saying that she expected me to help her more round the house. I explained that it was hard to do stuff round the house as the cleaner was always there anyway, and that I wasn't about to start cooking her dinner or doing her washing and didn't want her doing mine either. When I pointed out I walked her dogs for her every day she said she thought that was 'extra' ?! To this day I don't know what she meant by that!
Anyway, I digress...some people carry out these passive-aggressive unwanted acts of 'kindness' as an attempt to control others. It obviously worked for her because it left you on the back foot looking for way to control her.
Look, you don't like this woman - she's a bully, she's controlling. Yes it will be awkward and uncomfortable and you WILL feel like the bad person. BUT you do need to get rid of her, as assertively as you can because she is not enriching your life, she is making it harder. And with four children and a relationship with your DH that needs work (hope relate has been helpful, btw) you do not need to be wasting energy on an emotional vampire like her.