Although I always refer to my mom as "grammy" when I'm talking to the kids, apparently my example speaks louder than my words. When I'm talking to her, or more specifically looking for her, I say "Mom" (after all, that's who she is to me).
Babs calls Grammy "Mom" with the exact intonation I use. It's pretty funny to hear that come out of her little mouth.
She calls me "Mama," so there's no confusion.