The only way for you - and your daughter - to deal with this inadequate woman is to remove her power.
Her power is verbal intimidation, and the way to remove it from her is to totally ignore her.
Easier dais than done, i know, for your daughter who is frightened, and for you who want to protect her but ...
Ignoring this woman totally removes her ability to upset either of you, and her impotent fury will either have to be directed elsewhere, or it will have to fester insider her.
You will have a feeling of power, which you can pass on to your daughter as a valuable lesson - this woman is weak, you are both stronger.
It will take patience, calmness, and a little time, but it will work, believe me.