I love this quilt, Caroline!
While I suspected that the Gruffelo (umlaut u) was a mystical beast, I did check my German/English dictionary. Since it's not there, you are welcome to spell your English translation any way you wish. That said, I would recommend including the "e" rather than making it Gruffalo for us.
One of the coolest things about this Board is the international participation. Thanks for contributing!