Don't defend or explain yourself to her.
Having a battle of wits with an unarmed person is futile.
I used to get my feelings hurt by people like her too until I realized that their remarks were either out of jealousy or uncontrolled stupidity. Uncreative people are often jealous of but will never be able to compete with us. Don't be surprised or intimidated if she gives your MIL a purchased comforter or quilt.
She's to be pitied.