There's obviously a whole lot more to this - not maybe this particular and quite shocking episode but stuff in the past which probably could be helped and unravelled to some extent by your having some counselling.
It sounds astonishing that someone could be so hell bent on controlling what you offered to do, that she (and her partner) set about using you like some sort of slave, stuck in a small space, deprived of proper sleep and understanding, without any thought as to what you needed to make your kind assistance work properly for all concerned.
Any number of possibilities spring to mind from what you say : she is jealous of your own life with a partner, she's determined to push you into showing more than 100% of your attention to her and her children, the whole thing is some sort of test (which you are bound to fail), she's not very happy in her own life and therefore wants to lash out and blame someone for how she is, she's happy to be estranged from those who care for you, like her own brother and your Mother? And then, she has the ultimate weapon and like so many selfish women in that position, she's going to use it. No contact with your Grandchildren! All that shows of course is that she's not interested in her children's feelings or welfare, only - again - in punishing you!
You may have an idea as to why she would want to do this - punish you - or may be able to have a clearer view when you have talked this through with a trained professional and someone able to deal with all you say in a totally unbiased and independent way.
I can understand that you must be terribly sad, but you must think of yourself and how you have been treated - otherwise that treatment just continues. Once you get around to being assaulted, being reported to the Police etc., you need to say to yourself and mean it - enough is enough. Whatever else you do, don't ever let her think that her behaviour is in any way acceptable.
Get some help so that you can look at this more rationally - don't give way to distress and wishful thinking. As you have described it here, she's the one needing to make some very big changes.
Good luck and be determined to value the people that know and care for you.