My favorite place is The Old Country Store on Route 340. It's a decent size quilt shop with lots of fabric, a great selection of FQ packs, a decent collection of books, and tons of Amish made quilts for sale. They have all kinds of gift things, too. Upstairs is the People's Place Museum. It's really small, but if you're in the store already, it might be worth it go upstairs and see what they have on display.
Across the street from there is the Kitchen Kettle Village that has all kinds of little gift shops. There are three musicians who have sat in the middle of the brick pathway playing music for many years. They are relaxing to watch. There is a gift shop to the right of the Tee Parlor, I don't know the name of it, but if you go up the stairs inside that store, they have some Jim Shore figurines at decent prices.
The place I've found the best prices for Jim Shore figurines in the gift shop underneath Shady Maple in East Earl, which is about 45 minutes away. Good's is in the same driveway as Shady Maple and that's a fun store to shop in. Although they have fabric, it's more geared to clothing, though they do have some quilting fabrics.