I'm Jewish and my wife isn't. Every year, we go to my in-laws' to celebrate Christmas with them. Will it be too confusing to my daughter?
As long as you and your wife are raising your daughter exclusively as a Jew, and do not celebrate Christmas in your own home, spending Christmas with your in-laws can certainly be done, as long as it is handled properly. Just as Christians can share in a Passover seder with the Jewish side of the family without it being their holiday, Jews can share in Christmas with the Christian side of the family without it being their holiday.