Baby Layla-Grace was born with the umbilical cord around her neck and had inhaled fluid.
Doctors at Queen's Hospital, Romford, Essex, spent 20 minutes trying to save the 9lb 10oz baby.
But throughout the ordeal, mum Allyson Childs said she was subjected to a torrent of insensitive remarks from the midwife - Terrai Mutasa, 45.
Alyson, 26, said Ms Mutasa had laughed at her for requesting painkillers when she was in labour.
I am angry and disgusted. I've been let down massively by the hospital. I want a full inquiry. No woman should have to go through what I did.
She claimed that during the traumatic birth Ms Mutasa treated her contemptuously.
In response to her request for a Caesarean, the midwife allegedly said: "Do you think that won't hurt? Believe me it will."
Alyson also claimed that Ms Mutasa told her mother to "find the scissors" to cut the umbilical cord.
According to the Evening Standard, an internal report also revealed that the hospital added to the family's distress by losing Layla-Grace's pink bib. The hospital has apologised for this and for leaving the baby's body in a bloodstained cot.
The hospital's chief executive Averil Dongworth met Ms Childs and her partner Steve, 25 - who are waiting for the results of a post-mortem examination - and told them she was "moved and saddened" by their experience.
She said in a statement: "I offered Ms Childs and her family our sincere apologies. We will not tolerate poor standards of care."
Ms Dongworth said Ms Mutasa "no longer works here" and that she would not have staff with similar attitudes. Ms Mutasa was referred to the Nursing and Midwifery Council, for further investigation.