I love this idea. There are so many angles to what you could do with a concept like this. Imagine the witches daughter going to school, her gingerbread house off the beaten track, an outcast because of her mom. This could be a picture book or a novel.
How about the witches daughter as a teen torn between her mom's life and the village life. Would she protect her mom from the torch wielding mob or join them because of peer pressure.
Imagine the middle aged woman dealing with her young life in therapy after being raised under the shadow of her mother's wicked life.
Of course, there is the version where she is an acolyte into the world of witches, either ala Samantha Stevens or a dark tale of being inducted into the world of evil.
There are so many richly complex notions in this one title that I almost wish I wrote magic tales.