I understand your problem. We dont do gifts for me or DH because of ideology (anti materialism, consumerism, pro ethical labor standards) So we ask for donations to animal welfare charities and shelters in our name, instead. It took awhile for peoplemto realize we meant it, and didnt want gifts, but eventually they participated. Of course we accepted and thanked whomever gave gifts, but reminded them later than we do charity instead, and why. I think your problem is similar.
My suggestion is to apologize for not being appreciative (even if you dont mean it, it will ease the conversastion) and tell MIL that you truly appreciate the thought. That she bought a caucasion doll is a good thing, build on that. Also mention that the small parts are hazardous. After this, there are 2 good approaches:
1) If you REALLY cannot stand that stuff in your house, which is your right as a parent, next time you see her, talk about your values, and why you do what you do. Around holidays/birthdays, bring up how yoyur values influence what you buy and why this matters so much. If she then buys toys you dont approve of, thank her, return it without a recipt or give it to charity. If she cannot buy things you like, you can have your daughter write up a list of what she wants and innocently share it with her, or ask her to donate to a college fund, investment, gift card. This way you have some control over what comes into your house.
2) Also keep in mind that toys dont have influence over what your daughter thinks,esp if its only one out of 10. She will see babies with bottles IRL anyway! If your MIL is the only one buying this stuff, it wont be a big deal. After all, It IS just a toy, it doesnt have to be a battle. You will never be able to control everything your DD sees, touches, hears and plays with, and would you even want to? if you dont have the space, get rid of it, but if its just because you dont like what it represents, think it through and decide if it truly harmful enough to ban it, only you can choose.
I personally hate junk toys too, but its not worth damaging a relationship over it. If it was me, I would talk to her about my values and steer her towards toys you approve of, but if it doesnt happen I would accept gifts with a smile and not worry about it..