[Face Up.]

Ugh, I'd be upset if my family member took pictures of my underwear too. That's creepy! Do you think you would feel safe asking your grandmother to tell you if she has problems with your clothing (or other things) versus taking a picture of it? You can say you feel uncomfortable when she takes pictures like that but you do want to make things easier for her when she's doing the laundry.

I'm sorry about your job, too. I'd start applying other places before things do go south where they fire you, especially since you're not getting paid. Keep a paper trail of all conversations with your current job. I don't know what's legal or not in your country but you could have a legal case if they never end up paying you.