So she rejected the first quilt and now wants two new ones? I would give her a new quote (and require a deposit before work begins) that considers the price of the fabric + your labor. Quilting cotton now is more expensive than it was 7-10 years ago. The figure may cause her to pause and reconsider, or you may get fair compensation for your work after all. Though it's terrible you're having to eat the cost for the time you spent on the quilt you already made. With that in mind, I'd be very, very wary of starting these new quilts for her because she might reject these because she decides she wants something else.