I now can see the priest as a comic antagonist and can accept him in that role. He is still a very evil and dangerous one. Fortunately, I am not Catholic, or I might be put off by the general disrespectful attitude toward the cross, etc.

My comprehension of spoken Japanese is not perfect, but I believe that in this episode Hatchin first said she did not have the belly tattoo that her baby picture showed, but later told Michiko she lied about that. So I think she really is her daughter, despite the weird talk about who her father was and the timing of when she was born.

About the mother issue, I don't speak Japanese at all, but from what I got, I didn't see Michiko specifically tell Hana she was her mother, which I found weird. If she told the priest's wife over the phone, why wouldn't she tell Hana?

she told hana that the baby in the picture is her baby, she asked hana if she had the tatoo and Hana told her no, but Michiko told her that regardless or she having the tatoo or not that she would protect her. After they escaped, Hana admited that she lied to michiko. I am loving Michiko, if she was a bad person she would have just left her hana to be killed by the priest. so yes they now know that they are mother and daughter. the cute sweet moment between child and parent was great.

I loved that moment between them, too. It's not often we get an anime about a mother and daughter's good relationship. Especially one featuring a mother who is a hardened criminal, lol.