Gorgeous fabric! I have a quilt top sandwiched and ready to go that uses this fabric as a panel. I plan to quilt it in either an end to end horses or an end to end horseshoes - but will be quilting it using my pcquilter. I agree that hand quilting it would seem like an endless task. Can you machine quilt it on your sewing machine - maybe, as someone suggested, in a curvy meander or just in boxes?
I use the cheap fleece from Walmart as batting. It's 60" wide, so for most kid quilts, 1.5 yards is plenty. It's woven, so there are no worries of batting bunching up. At less than $3 a yard it is pretty low cost, too.
Good luck!
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