Now you know the majority opinion here, and I definitely agree.
But how will you handle it when she demands you give it to her because it has HER grandfather's fabrics it? You will tell her you are very well aware of that, but the problem is she is apparently not aware that YOUR labor, YOUR time, YOUR creativity, and YOUR extra materials are also in it. Therefore, if she is unwilling to pay you for your part of the quilt, a minimum of $126, then perhaps you will sell it on Etsy/ebay/craigslist/etc. to recoup your commission and if there is any left over you will give that to her.
Give her a time frame to pay for it or sell it.....IN WRITING! (Maybe by email IF you get a response from her)
Best of luck and learn from this one!
Jan in VA