It sounds like what she's telling you is that she would love to have a quilted bag made by you. It seems like she knows she can't afford to commission work from you, but if you are good friends, why not "gift" her a nice quilted bag. On the other hand, if your conversation with her made you feel like she was trying to take advantage of you, then you certainly shouldn't feel obligated to do work for her for free. Follow your heart and enjoy your craft!