Did she help you sew any of the seams? My grandson was 5 when we watched one of Alex Anderson's Simply Quilts episodes on kids making quilts. He decided that he wanted to make a quilt too. We discussed what he would do with it -- keep it for himself, donate it to sick kids, or give it to a family member. He decided to give it as a baby gift to his auntie.
I cut 4 1/2" squares and he sewed them together on the machine while I supervised. Yeah, some of his seams were wonky (I redid a few after he went home for the day) but all in all it was a good quilt for a 5-year-old. It was 36" x 36" when he decided that it was big enough "because babies are really tiny, Grandma." I quilted it (FMQ kind of scared him that he might put a needle through his finger) and he gave it to his auntie at her baby shower. Cousin went to his baptism wrapped in Grandson's quilt.