i had this problem with a close friend and regardless of what i said or wanted she insisted on paying me.
i finally got around it in a very sneaky way and she still jokes with me about it to this day (its been 5 years).
i told her to pay me with a check and i just never deposited it and therefore never really got paid for making the quilt.
i do agree with her that it was sneaky but in the end we both got what we wanted and were happy with the way the problem was solved.