I have made dozens of rag baby quilts out of flannel and have never had a problem with shrinking. I have never washed the material before making the quilt, only afterward. Also, one of the clues that I like best is to put a terry cloth towel in the washing and drying cycle. It helps a lot in the "fraying" process. I also wash the baby quilt and the towel alone in a full water cycle. It seems to swish around more which makes a beautiful ruffle. But, like one of the posts says, a dozen quilters, a dozen answers. LOL