Welcome to the forum Sassymum :D :D
Sounds like you have a wonderful mum there with her pups :)
If she's happy the way things are then I'd leave it, no point in fixing something that isn't broke :)
Like you I slept in the room with mum and pups - until they left

I didn't sleep at all in my own bed and was happier just being near them and on hand to let mum out to the garden in the wee small hours :) I don't know how I got any sleep, all I wanted to do was watch them feed and grow and be cleaned :)
Re. the Lactol, some people give it, some don't, its personal choice really. It would be good for her to have a puppy food tho while she's feeding the pups so that she has more calories available for feeding them, and you could gradually increase the amount she gets, dividing it into about 4 meals a day (if she wants it ;) ) and as much water as she wants :)
Hope everything stays well with your girl and her babies
Regards
Dill