You really need to put the complaint in context. Why is she cursing? What if anything are your children doing to prompt the cursing? What has your reaction been so far? Is she mentally competent? Have you had altercations with her in the past? Have your children done something to get on her bad side? Is your neighbor just crotchety and acts that way with other children or neighbors?
If you or your children have done nothing to warrant her behavior and she does not appear to be otherwise dangerous, I recommend that you just ignore her, and tell your children that the lady is somewhat looney and it is best that they leave her alone. She may enjoy the confrontations and derive pleasure from upsetting you. Don't feed her neuroses.
If she is dangerous, by all means seek a restraining order.