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Can you beat granny or is that in intentionally impossible level?

you can actually, it's really just hard, so no, it's not impossible. You just need to chip-in damage or just try to hit it on the right time. Then after that, you are basically done. so technically, its the ending

I mean does her attack after she says she wont hang up ever end? or is that just the ending?

sorry for being 3 days late. after she says "'ll never hang up" you will need to wait a few seconds. it doesn't matter if you miss or not, after the "call" its basically the end.