What a cute idea for a quilt. I think it would depend on how you're going to quilt the blocks. If you're going to quilt right up to the embroidery I think I would remove the stabilizer. But if you're going to stitch in the ditch around the outside of the blocks, I might think about leaving it in there to keep the muslin looking "crisper". And there are different weights of stabilizer so I'd think about how heavy and stiff it feels too. Can't wait to see the finished quilt.