Yeah, let her see how it is affecting your kids. He isn't hurting them physically, so there is little you can do. I am sure they will let something slip now and then to their mother about how they feel. She may be trying to make it seem alright, by having om's daughter over, but she will eventually see it really isn't.

Are you making lots of holiday memories with your kids? Do y'all do Santa photos? Or maybe a lovely family photo of you and the kids, with copies for them to keep?
You said you love and miss them dearly? Are you still seeing them as usual? I hope you still get them a lot. And, good for you on the continued good DBing!
vc