I think 1930 reproductions would be pretty with it. Something with soft colours as not to over power the embroidered piece. I would add a nice fabric border to the original piece leaving the original intact. I would then sew quilt blocks to go around it to make it a lap sized quilt or baby sized for the grand daughter. How flimsy is the fabric? It might need a light weight fusible on the back to prolong it's life in a quilt.