Your MIL sounds just like mine. We figured out years ago that she's NPD all the way.
First, because she has no boundaries, you have to build super strong ones yourself. The fact that you've allowed her to encroach in so many ways tells me you have some trouble handling this. There's a wonderful book called Boundaries that you should read for future reference.
The ways you deal with an NPD person:
Build your boundaries! Hugely important. Learn to say no. Learn to handle the pushback.
Do not tell her anything. The less she knows, the harder it is for her to glomm onto things.
Do not give her attention. Don't engage. Many behaviors are just attention seeking. The way to starve an NPD person until they leave you alone is to have zero reaction to anything they do or say. Act pleasantly neutral and keep your focus on other things.
Limit what you accept from her as "help," and put in perspective what she does, so you don't get tangled in her martyrdom web of trying to put you in her debt.
Get your husband as your ally here. If he buys into all her stuff, you're on your own. He may need to do some reading (see sites I referred to later in this post) or even therapy to see her clearly and learn to handle the dynamic in a more healthy way. Or maybe he's already seeing it and backing you up?
Usually there will be a core group of people who believe her and stick up for her. She needs these people to feel okay about herself, and you will find them undermining whatever you do and feel that goes against her agenda.
Be prepared to face some over-the-top negative reactions from her any time you put up boundaries or refuse to engage in her NPD dynamic.
This site is interesting.
https://narcissisticmil.wordpress.com/
There's another about being a daughter of an NPD mother, which has helpful tips for dealing with any NPD person in your life.