How about a crazy quilt or a memory cut up the pieces add other fabrics and embelishmnts. You can make a couple of wall hangings and add a few more of her belongings, and some pictures. Keep a wall hanging for yourself and give the others to her close family mambers. You can embelish with beads, sequins use velvet and other fabrics and do some fancy stiching by machine or hand.
Great to see she was happy before she passed away. Sorry for your lost :(