All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
We previously referred you to Fatwa 83626 which indicates that touching a woman with lust does not make her daughter unlawful to marry; hence, your wife is not unlawful to you by merely touching the body of your mother-in-law even if it was done with lust.
You are advised to repel this Waswaas and to live with your wife normally as if nothing has happened. You did well by making Tawbah (repentance) to Allaah but be careful not to repeat that mistake in the future. If you fear falling into sin with your mother-in-law, then you are advised to treat her as a non-Mahram woman; this means that you should not be alone with her or travel with her without having one of her Mahram men with you or anything similar which could lead to temptation. Blocking the means leading to sin is obligatory.
As for the Hadeeth you mentioned in the question, Hanafi jurists cite it in their books but we could not find it in any of the Hadeeth books and Sunnah references available to us, as many as they are. There is also a similar Hadeeth that reads, "Whoever looks at the private parts of a woman, her mother and daughter become unlawful to him." Al-Haafith Ibn Hajar and Al-Albaani classified it as weak.
Again, we would like to assert that you should pay no attention to this matter; rather, you should totally disregard it if you wish to avoid the affliction of Waswaas.
Allaah Knows best.