Sara-
The only advice I can give you is generic.
First, document everything, in every way you can; memos, e-mails, witnesses, your own written record, even tape her if you can.
Look at it as building a case; that is, after all, what you are doing.
Be very subservient and accomodating in her company.
Casually mention you've been offered other employment, but that you're not sure the work is challenging enough (even though the money is very good), and that you are well and truly torn at the prospect.
Be calm as you can manage.
That being said, unless someone higher up the ladder than your boss takes an interest in the situation, you are ultimately shoveling shit against the tide.
You'd best be looking for another situation in any case; put some feelers out there and see if anything happens.
If and when you're ensconced elsewhere, package up your documentation, and deliver it to the appropriate party; maybe even get statements from the other offended parties that you mentioned.
Might be a cold dish to feast on down the road a bit.
Good luck, Doc!
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