Taken completely separately from some people's interpretations which rub many people the wrong way, Christianity is a beautiful religion. But honestly, Red Velvet is a beautiful cake, and I wouldn't want it shoved down my throat, either ;)
I'm a completely different flavour of Pagan from Wicca, so I'm not sure what to say on that subject, but we do have at least one Wiccan here who can hold forth more knowledgably than I ;)
BUT!
I have been in EXACTLY your position: living in my in-laws' house, and refusing to let them try to paint a Jesus coating over a daughter we wanted to have NO coating until she's old enough to choose one for herself. Well, living in their attic, to be precise. Over a detached garage.
We made it extremely clear when our child was born that she would not be attending a Christian church and was not going to be baptised Christian. While we were living with them, we visited their church a few times, then found something else to do on Sunday mornings (like go to a Unitarian Universalist Church).
You may live in her house, and that means you abide by her house's rules and try not to offend her religion, but it doesn't mean you have to convert and convert all your children, too. If you are opposed to spanking your children, would you let your mother spank them, simply because you live in her house?
Personally, I think the "I am their mother" law trumps the "This is my house" law. A LOT.
Your eldest is probably of an age to understand a conversation with you, if you explain to her that you don't necessarily believe what her grandma does, and she doesn't have to believe what her grandma does, either. Or what you do. And that she can ask questions about anything.
It was hard for us to remain neutral, so we started wittingly exposing our daughter to other religions and spiritual paths, in order to keep her mind open to the possibility of other things, too. Of course, she's THREE, so she's a bit young for any of it, but at least she's SEEN a Buddhist meditate, and she knows how to draw up Qi out of the earth - perhaps not as well as she knows how to fold her hands and bow her head and say "Jesus Christ," but at least she knows that's not all there is.
Sending you luck and strength!
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"I am a wizard, not a saint." - Harry Dresden
States with legal same-sex marriage:
Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Iowa, Washington D.C.*