Doing things properly according to law for home bakers and store front bakers is priority. But, also important...especially as a small operation is to cover yourself.
I don't even entertain ANY size order with out a good faith payment. I have established relationships with certain people and they can pay when goods are delivered. But, in the mainstream...get your dollars before any ingredients are purchased. Especially in questionable circumstances like these.
Oh boy - I hope things turn out smoothly for you. Try not to get in your own way here. There is a normal standard of worth you should have. Try to be nice when you explain that this is a one time price for her. It seems you're now realizing that you're being taken advantage of. It'll only make it worse to bite her head off when you deliver the cake. If you continue with the order...maybe try to approach it like you did a nice thing helping somebody provide a great cake for fun occassion. But, boundaries! Write up that invoice and say...Okay...here's your cake, I set it up for you. I'm glad to have been a part of your day. Now, here's your invoice. Unfold it in front of her...and say, here's the regular price...and here's your one time discount listed. So, next time you'll know how much I regularly charge and perhaps you can save up.
Smile..."have a great party!" And, leave. Go home and be glad to be done!