What an absolute treasure. My mother quilted, but she made utilitarian quilts, using blankets for batting, and since I was the youngest of 7, none of them survived, although I do have set of pillowcases that she embroidered, which I treasure. Just looking t the picture of the quilt it seems to be in decent shape, so I would just applique over the damaged blocks to maintain the quilt. Your daughter seems to appreciate what the quilt was made for, to cuddle under for wonderful dreams.