how do i proceed??

As grandparents, you have a concern and, maybe, some rights.  Where to start is to speak with a local family law attorney.  You could call DCFS as they are the State agency charged with the safe-keeping of children, but you need to first know all your rights and risks to you, the child, and your daughter.  It may be that your daughter goes with you to the attorney.  Maybe she views a support order and some restraining order needed or is, at least, open to the discussion.  Maybe not, but you can judge whether or not to broach this discussion with her.  You can then meet with the attorney.  Should she not attend, you can see if a guardianship in probate is the way for you to proceed or if you have standing in divorce court to seek custody.  If she does attend, she can review her various options in a paternity case.  As should be evident, these are very intricate questions that turn on the underlying facts, who is the Petioner, and the practice of the county in which you live.  As such, an appointment to consult with an experienced attorney is needed.  Should you not know who to contact, there should be a local county bar association in the County that operates a Lawyer Referral Service.  You can get names of indivudals and review the websites for each attorney with an appointment set to speak with the individual you feel is best suited for you and your situation.