Crabby Old Women!

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I spent my entire childhood, along with my little Brother, being treated differently than our cousins by our "Witch" of a Grandmother!  Our parents had gotten a divorce when I was like 5 & my Brother was just a toddler.  Our Father was an abusive, alcoholic Jerk!  Our 2 cousins, on the other hand, had parents that were "High School Sweethearts".  We are both convinced that it has something to do with that.   UGH!  Our Grandmother would treat us differently in many ways.  If we were all doing something wrong - She would punish my Brother & I.  Our cousins were just sent away to "go play"!  I will not go into detail about all of the things she did to us.

- Flash Forward To Present Day -

I am engaged & have a beautiful, 1 year old little boy!  My Fiance's family isn't too far from my own in thier ways.  His Mother is exactly like my Grandmother!  She has 5 grandchildren (including our son).  She is treating one of her Grandsons (my nephew) exactly as I was treated when I was a child.  His parents (his Father & my Fiance are brothers) are divorced.  His Mother left When the boy was very small because she suddenly decided that she was gay!  That's another story for another day, though.....  His Grandmother curses & yells at him.  Every time something goes wrong - He is blamed for it!  His other 2 cousins that are close to his age (our son is much younger than him) hung the moon & stars!  That's what she thinks, anyways.  To tell you the truth those 2 are absolute F***ing Brats!  They just make me want to throw something! 

Should I do something about this or just let it go?!  I DO NOT like standing by & watching someone treat a child badly!  Should I say something to her or someone else?!  Help!  I don't know what to do?!