I have the same panel and did the same thing. I bought four panels for $1 each when our WalMart closed their fabric department. I used sashing in primary colors to match the colors in the fabric. On the Star light, star bright picture that said this "book was made with love for ", I appliqued over the words saying "this quilt was made with love for ..." I used the cover picture of Mary Engelbreit"s Mother Goose and another picture to make a pillow to go along with the quilt. I was also able to get the coordinating fabric which has all the characters on blue dotted background to use for the backing for $l yard.
The salvage says Mary Engelbreit for VIP by Craston 2006.
I do this a lot with story book panels.