I would consider the fabric she used that was from your stash as a "learning loss". I would return the quilt to her with her deposit and tell her exactly why you cannot and will not quilt it and consider that you got out fairly cheaply from a nasty situation. I doubt that she will be a bother any more and your mind will be at rest, knowing you were taken, but only by a little and that the situation is at an end for you. Peace of mind is invaluable.