I recently finished this I Spy quilt for a nephew (wish the picture taker had made it better) and used rickrack on it.
I used a straight stitch through the middle of the rickrack and let it curl later, yes, as it's prone to do. Babies and "littles" like 'playing' with it like that - a tactile thing.
I inserted into a seam allowance and pressed that seam away from the rickrack.
I applied it before I made the quilt sandwich and skipped over it when I quilted the whole.
Your little one will like the quilt no matter, I'm sure!
Jan in VA