It might sound a little slimy (but no worse than what this developer has pulled on you), but you've given her a 35% stake in THE COMPANY, not the product, no? You could always shut down the company, sell off the assets (your prototype) to another company that you start for a dollar and start fresh with 100% equity.
I assume that the 35% equity doesn't actually give her decision-making power? There's probably a couple of loopholes you can exploit here.
Once you've got your equity back, follow some of the advice here. Get yourself a real developer, try to get a little more money and release a version 1. Barring that, cut your features down, and rethink what you really need in order to get you to the next stage. Something small and simple may be all that is really essential.
I assume that the 35% equity doesn't actually give her decision-making power? There's probably a couple of loopholes you can exploit here.
Once you've got your equity back, follow some of the advice here. Get yourself a real developer, try to get a little more money and release a version 1. Barring that, cut your features down, and rethink what you really need in order to get you to the next stage. Something small and simple may be all that is really essential.