I'm so sorry that you have all of this stress to deal with, inviteseller.
To add to the excellent suggestions posted I think that maybe you should get rid of the baby things, unless you really think that you will have another child. If this is what these people are after, foil them by getting rid of it. You could take the stuff to a consignment shop and get a bit of cash for summer fun.
I would tell the pressuring people *one time only* that my children were more important to me than anyone else in the world, and that doofus person had harmed them. I would say that I would do anything necessary to protect them, and will have no further contact with doofus - ever. I would say that I hope this won't affect my relation*ship with you, and the subject is closed to further discussion. If the person persisted in the begging I would say that I was sorry, but if this is all you want to talk about the call will have to be ended. Goodby.
If the cut person shows up at your home and won't leave you may have to call the cops.
You are in the right here, and the others are very, very wrong. Don't hesitate to keep that spine polished.