When you are making a wall hanging, you are making art. The rules for ART are: Everything goes, Everything is allowed!you aren't limited to fabric. you aren't limited at all. If you can think of it you can do it. The lines between a quilted wall hanging and a hanging collage are very blurred unless you are entering it in a juried competition, and then you need a copy of the rules. Basically, parts can be stitched, parts can be glued, parts can be quilted, parts can be woven or painted, parts can be wooden or metal or yarn or anything you want! Be creative!

Thank you everyone, I do plan on being creative as this is a wallhanging! I may even try some shadow quilting around the appliques. I did feel 'limited' on the baby quilt as I wanted it to be functional.
I originally thought I would put the appliques on baby's quilt, then DUH... I thought.. the reason I made it of flannel was to be S-O-F-T. Appliques would take that softness away... so Voila` a wallhanging was instantly called for!!

Go for it!

Thank you!