Legal Question in Family Law in New York

In May, my 2 year old daughter had fallen out a window and fractured her collar bone. (She is fine now) Since my husband and I each had a drink when this happened, CPS got involved. They took our daughter away from us. After complying with parenting and alcohol classes she was returned to our custody a few months later with the condition that she does not have any unsupervised time with her grandfather because he was found to have an unresolved CPS case involving his girlfriend's foster child many years ago. At the time we were living with "grandfather" and when we got custody of our daughter there was a court order that we "shall reside with_______" (my sister in law) because we didn't have a place of our own and she was willing to let us move in. We started saving for our own apartment and found one at a price we couldn't refuse. It was extremely stressful living with sister-in-law. We paid a security deposit with the plan of my husband moving in and fixing up the place and also he'd be much closer to work, and eventually me and tghe baby would move in once it's approved by court. We told our CPS worker of this plan, but eventually I was staying at the apartment more than at my sister-in-law's until one day the CPS worker happened to come by the apartment and pretty much "caught" me living here. She said she will have to put it in her report. Now, i'm so scared they will put me and my husband in jail and my daughter in foster care, when the only reason we were ordered to live with my sis-in-law is because we were not allowed to stay with "grandpa." Do you know what the judge will do to us and/or what the consequence will be? Are they gonna take away our daughter?

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