Charlie Sheen just settled the latest custody war with Brooke Mueller, who accused him of drunken visitations with his kids and excessive corporal punishment.
Mueller made various allegations and a court date was set for today ... but we've learned on Monday Charlie and Brooke agreed to monitored visitations.
Charlie settled, but we know he has serious beef with Mueller, saying her allegations are all part of a shakedown for cold, hard cash. He also thinks it's ridiculous that Brooke is alleging misdeeds around alcohol, because he claims the twins were born with "the ultimate child abuse" -- fetal alcohol syndrome.
We're told Brooke wanted to move out of California with the kids but Charlie objected. They settled on Brooke being allowed to move within a 50-mile radius of his house.
Charlie also says ... if he's such a horrible father, how is it that he's a good father to his other kids (photo below with Charlie, Denise and the girls).