That's messed up. This lady is clearly insane. She probably wants them to sleep in so she doesn't have to deal with them herself. It's so screwy that she believes she has a valid enough case to come to your house and talk with you about it. What's worse is she is setting rules that will inevitably lead to more tension when you don't "comply". It also sounds like her kids are mamma's boys/girls and will likely stand behind her if things escalate. The last thing you want is this to turn into some petty little feud between your family and hers.
I would confront her right away. Let her know that you understand that kids of their age tend to sleep in, I mean, I did at their age, blah blah blah. Let her know that now that you are an adult with weekday responsibilities you will not be wasting the weekend hiding in your house until her babies are rested. See how it goes and play it by ear from there. Then put up a camera to make sure she doesn't mess with your dogs while they are out or throw anything over the fence for them when you're not around.
The reason I say all this, is because I got into a feud with my neighbors whose yard butted up against the back of mine. I caught their grown kids who were living with them reaching over the fence stealing tomatoes from my garden. Their embarrassment for being caught doing something so damn petty started this 5 year long fight between us, until I moved. Not the homeowners, the kids. They would leave their rottweiler out in the yard to bark the whole time I had people over and when I didn't respond to that, they started throwing trash in my yard. More petty stuff I could deal with, it was the fear they would throw something over that would hurt my pooch that worried me. I ended up mounting a camera and telling them it was there. Things got a little more tolerable after that but I wish it never escalated to that point. Funny thing is, I used to grow so many tomatoes that I gave them away all the time. If they wanted them all they had to do was say "hi, lots of 'maters you got there" and they would have filled up a bag for them.
All I'm saying is I would try to end it quickly. Cussing them out will just cause it to last longer and neighbor feuds are so freaking draining.
I just wanted to add, I'm no pushover. I put myself through school and paid my mortgage carrying kegs to the third floor of the Chicago Stadium for Bulls games and collecting for 2 bookies. Neighbor feuds are way more complicated than getting a gambler to pay his debts. Believe me.
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