So this lady was cool with making turtles for kids in hospitals (because it made her feel good about herself) but NOT cool with being kind to actual children within reach... She sounds like she has problems. I would just bring the kids and act like you never heard what she said to you. Unless the shop owner had a problem with them, I'd bring the kids back. And then, closely monitor her interaction with them. Who made her the workshop sheriff? Grrrr. Not kind.