I have usually prewashed my flannel, but am finding that the better stuff really doesn't shrink like the less expensive fabric does. Also, depending on the quilting, the shrinking seems to be minimal. I use a lot for charity quilts and I also like to back quilts with the flannel...it is warm and cozy. As for batting, I use it......depending on where it's going to be used and who is going to use it, I vary the type of batting. I've used anything from 6 oz. poly batt to the really thin Thermore. I think the quilting shows up better with some sort of batt......JMHO....