I personally like & use Derwent Inktense blocks/pencils. They are non-toxic, which is important to me for baby quilts. It is important that the recipient be willing to wash the quilt in cold water -- but that's the washing instruction I include with all my quilts.
You need to set the ink. It can be done with aloe gel, but I prefer using fabric/textile medium. I use Golden brand when I can get to the local art supply store. Otherwise, I buy whatever brand I can find at Hobby Lobby -- which takes 7 days to "cure" before the fabric can be washed.