I'd go with a gift card to her favorite store AND a mug rug, mug and some flavored coffee or tea or creamer.

Why not take a scrap of fabric and sew it into the shape of a square. Insert a note that says something about how special she is and that the note is good for --- amount in dollars to be spent. Take her to some quilt shops and say that you want to spend some time with her. When she goes to pay, hand her the pouch. She won't know you plan on picking up the bill until she goes to pay....you get to spend time together and give her a gift.

Jillmc,
I have a pattern for a pin coushin, and you can make it, you could hot glue ruffles around it. I love the one I made,
stores pins and so easy o put pins in and take out when using it. Am going to make one for friend and another one for me. E[ATTACH=CONFIG]375404[/ATTACH]-mail me if you want directions.

I think these are all good ideas, but if you are leaning toward the pincushion, go for it.

A small package of Clover Wonder Clips plus a $25 gift certificate to her favorite LQS or an online site like Connecting Threads.

My quilty friend and I share the same birthday and do lunch every year; often times giving quilty gifts to each other. Pattern books, Gingher scissors, even fat quarters or charm packs with a small pattern like Schnibbles or those from This & That. We just love it all!! There is a very nice desk top needle threader out there by Clover and some needles to go withit and a few fat quarters too. The possibilities are endless. Most would be grateful with whatever. Machingers quilting gloves and a bottle of Best Press.....I could go on and on because most quilters just love fabrics and notions.
Oh, don't forget a year's subscription to one of the great quilting magazines out there!!

I just recently bought the materials for this one: http://www.rileyblakedesigns.com/cut...ty-pincushion/

I got some fancy scissors and found it fun. they are useful too and mine are very colorful and sharp.

I have a dear friend who sews and quilts far better than I, but she really enjoyed a couple of things i have given her- one was a prayer /comfort shawl (simple pattern from the yarn wrapper) and a metal quilt block that she can hang on the wall, house, barn, garage etc.

my quilting buddy and I give magazine subscriptions to each other's favorite magazine so that's around $25.
another idea in your price range would be a FQ bundle
or jelly roll if she likes these
gift card is always great for fellow sewers
we both enjoy our Joann's gift cards LOL