hI.. So sorry to hear that you are facing such a mean neighbour. I dont't have such experience. But your neighbor seems to be mentally unstable.. As you mentioned, the more you talk to her, the more noises she will make. So I think it is better to let the town council handle the situation.
Btw, how about others neigbhour? Are they trying to talk to this woman? If other neighbors make complain against this particular neighbor, I hope town council will take some action.
Good luck. and Get well soon.