Even if he is a full yorkie, you never want to breed a dog that has obvious faults. You would want to breed for the best example of the breed that you can. I know you are in a touchy spot with your mother in law, as she probably thinks her baby is perfect; but maybe you could explain you are looking to find a darker colored stud, or a smaller one; but that you hope you can find what you are looking for in a stud with the great temperment of her boy. Good luck