Well I'm glad to hear someone remembers the one I'm talking about! Feel like I'm a step closer, haha.

Could your gran have made it up using a pattern as background.

It sounds so familiar! I am wondering if it was a kit from Herrschner's. It was a mail order catalog for crafts. The had a lot of kits. I loved getting their magazines. Also there are Aunt Martha's iron-on embroidery patterns. I used to love to go to Woolworth's and look thru the patterns. I started embroidering in 1962 when I was 8 years old.

If you find it, please post it. I am looking forward to seeing the quilt your grandmother made.