Prism99

I would recommend relatively close quilting (every 2" or so) so that the batting is stabilized for the first wash.

Edit: The encasement in cheesecloth was to prevent bearding. You definitely do not want to try to wash this batting before quilting as it will turn into a mess. Modern processes are able to pre-shrink the wool and bind the fibers together so there is no need for cheesecloth and so the batting shrinks much less in the first wash. However, the old stuff doesn't have any of that. You need close quilting so that, when the batting does shrink for the first time, it is prevented from shrinking too much in any one area. If there is not enough quilting, the batting will not only shrink too much, it will also distort so you can get a lumpy result. That is correctable by adding more quilting, but you really don't want to have to deal with it. Better to do enough quilting first.

If you are nervous about bearding (or allergic to wool fibers), you could add another encasement layer of cheesecloth. The problem with wool is that the fibers have little hooks on the end; it is those hooks that bother people like me who react to wool against the skin. Modern wool batting has been processed so the hooks are already entangled with each other, making bearding (and allergic reaction) much less likely.