I made a stick figure quilt for my GD when she was five. She's now 23 and still has the quilt. Yes, it's faded but it surely was loved.
I used plain old crayolas. Covered them with a press cloth to heat set and it worked fine. My DIL is Korean and they do believe in clean so that quilt was washed to death.
I used an off white muslin for the base. I washed the muslin to get any fabric finish out of it.
Have you tried crayolas over sandpaper. Quite unique.