the malawians don't eat while they have fry in their mouth so will spit them to feed so in your case i believe it's a good thing. Tanganyikan species will eat while holding.
from the info you've provided It sounds like normal behaviour to me but i would strip them or catch them when she spits and let them grow up in a net. i expect that when you attempt to catch them is she may suck them back in so stripping may be the only way. It is quite easy although doing it on a dem first up may be a little challenging due to their size, here's a vid that shows it clearly. I always stripped my malawians so they don't loose too much condition.
http://www.cichlid-forum.com/videos/stripping.php
removing her from the colony could cause an issue when you reintroduce her. You have removed her from the pecking order, the females have a pecking order just like the males so when she goes back into the main area there could be problems. I think you just need to wait that out as they simply need to sort it out again and that may mean she or other females get injured. I found it best not to remove the females for any length of time, catch them when you want to strip and then return them straight back after removes a lot of dominance drama.