You're losing sight of what's important here. She left you and took the kids then is not letting you see them.
Get Family Services, go to a legal aid society, something pronto.
Stop all this talk about repenting, etc. From what it sounds like, she's jerking you around. I suspect she's seeing someone else and is planning to leave you flat without the kids.
Man up and get your kids back. If you don't stop the pity party and start showing some confidence in yourself, she's going to continue to walk all over you.
The first priority is your kids. Who knows what she and your IL are telling them. They could be saying you abused them for all you know. Get them back first.
M-43 W-40 2D - 9 and 5
Emotion, yet peace. Ignorance, yet knowledge. Passion, yet serenity. Chaos, yet harmony. Death, yet a new life.