Oh. My. Word. I can't believe she would act like that. Especially since her side of the family has a mixed heritage, you would think she would be much more open-minded. How interesting and hypocritical. I would do like, everything everyone mentioned so far.

First of all, state your case clearly, again, and emphasize how offended and hurt you are, and even more emphasize your love and devotion to Kyle and y'all's children. Discuss how even Kai's complexion has changed--and she didn't say anything about that. I would even show her the cases where a couple who were both mixed themselves (the mom and the dad had like an in-between skin tone/light to medium brown) and they had twin girls--one who was very dark brown/much darker than both parents, and one who was so white with blond hair. I'll try to find it for you--it's really cool. I would hope after discussing it seriously once more, she'll come around, apologize, see the error of her ways, and say she was just teasing. If not, and it gets worse, I would say then that maybe you'll do the paternity test at her cost, and go from there. Best wishes.