My daughter has one of those critter blankets some of you may have seen where its a head & arms of a stuffed animal sewn in the center of the blanket and the fabric is a form of plush/minky top and the backing and binding are satin...its about 12" x 12" and that thing has been through a million washes, she sleeps with it and takes it everywhere and that satin is still in great shape, and all the seams are together nicely...I think satin would work, I have thought about doing it myself I just haven't gotten around to it yet
Good luck!