I'm sorry but if some disgusting harridan was putting the fear of god into my child every single day, and making her believe she was in danger - i would have done more than punch her!!!
this kind of treatment could effect your daughters whole life!
and before anyone says 'you will sink to her level etc' - i don't care, i would not put up with that kind of behaviour in this scenario.
well done loopyc!
some people haven't the capacity to see reason or feel guilt or realise the error of their ways, they only understand this kind of behaviour - you tried reasoning with her, it didn't work - so you played her game, at her level, and it sounds like it worked as it sounds like she didn't hit you back.
i do not condone violence though.
i would have rather secretly filmed her in action, or sent her and official warning letter or something, but sometimes its the only way to really deal with it.
i expect her neighbours are not exactly enamoured with her either and if the police are involved, some of them will likely stick up for you (the police may even know what she's like anyway)