My future mother-in-law HATES me?!? (sorry for the little rant she just really gets to me!)?

Me and my fiance have been together for a year and we've known each other years! since I was 19 and started of as an intern and worked myself up and he was 22 (we are now 25 and 28) at first we actually hated each other because he was my boss at his fathers company and we just didn't see eye to eye but then... show more Me and my fiance have been together for a year and we've known each other years! since I was 19 and started of as an intern and worked myself up and he was 22 (we are now 25 and 28) at first we actually hated each other because he was my boss at his fathers company and we just didn't see eye to eye but then we got to know each other and I got a new job so we can be together.
5 months ago I made a point of getting to know his family (I get on with all his family except her!). He didn't want me to meet her because he knew what she was like but (I wish I didn't now) but I pressured him to meet her.

She hates me because his parents are both very wealthy and thinks his marrying lower then him and she thinks I'm a gold digger (I will sign a pre-nup to shut her up cause I don't care about the money!). I'm 7 months pregnant, she has claimed that my baby isn't his and I'm trying to trap him and has said it is my ex's and (the pregnancy was an accident I was on the pill but it didn't work)
My mum is Brazilian and dad is Irish-Italian even though I was born and raised in London as Catholic not a strong one but its still my religion (his Jewish but they are not strong Jews he don't observe Sabbath, eat Kosher etc) but she doesn't like that I won't become Jewish yet my fiances dad was Christian so she just likes causing problems!
She isn't even a good mum! She put my fiance and her 2 daughters in boarding school because she said she hates kids, his told me so many stories of horrible things she done to him as a kid and to him its just normal because his so used to her. She critcises her oldest daughter for NOT having a Nanny for her 3 year old son as in her head its actually weird to want to spend time with your child!

She always insults me & its starting to stress me out which isn't good for the baby and my fiance sticks up for me he once he threw her out the apartment once when it got really bad and she reduced to me to tears and his shouted at her and told her I feel but she doesn't care and carrys on or she does it when his not around and acts like I'm exaggerating
I don't want to see her but not seeing her means not seeing his 14 year old sister (she would refuse to let us see her or are daughter when she's born and I love his sister we always talk) and I also love his step-dad his funny and humble and would love him to be granddad to our child.
She brings up his ex-fiance whenever she can because she preferred her and she still see's her and always suggests they get back together! and blames me for breaking them up (they broke up because she cheated on him).

I have people telling me I should leave him because he isn't worth the baggage (but I feel bad leaving him, its not his fault his mums a crazy women) and people saying I shouldn't because it means that she's won...I'm just so confused!
Update: @H I'm not controlling I'm actually the opposite of that I don't mind if he wants to go out or text or hang out with other girls and we are both fun spirited people and I try and I was taught by my parents to take the high road if she says something mean to me I ignore her and I always smile and welcome... show more @H I'm not controlling I'm actually the opposite of that I don't mind if he wants to go out or text or hang out with other girls and we are both fun spirited people and I try and I was taught by my parents to take the high road if she says something mean to me I ignore her and I always smile and welcome her and offer her food or a drink but she refuses to try with me!
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