You know what...you are right. I have a very good relationship with my mother in law. I love her dearly and I know she loves me as much. I know that she will love it simply for the effort and love I put into it, and not so much what it looks like. I think it upsets me most *because* I love her so much...I want it to be perfect for her. But You are very right...perfect doesn't matter to her. I know that.

I would give it to her with a note explaining that after you washed it there was a lot of unexpected puckering, and that it may have been due to the batting used.
And I would include a "gift certificate" to make a replacement, but she can enjoy this one until you get the new one made. She won't feel left out, and I would think she'd be understanding. She may be very happy with this one as it is- who knows. And you can explain that a new one will allow for easier maintainence. She could end up with two and be twice as pleased.

deema, crazy question.
Could it be the thread that drew instead of the batting?
I am just thinking if you get the quilt wet again and block it
to let it air dry you will stretch out some of what you don't like. Try stretching the stitch in the ditch threads, without breaking them. I don't know if it will make any difference but it might.
How you feel about it is what is important here.
If it were not a gift for a super special occasion, just a regular hello/ how are you/ I love you day, would you want to give it to her? If yes, then do so 'on a regular hello/ how are you/ I love you day'. If she loves you she is going to love the quilt you made her.
On the other side of the coin, how would she feel if she knew you made this beautiful quilt for her and she didn't get to have it because it puckered? I think how she would feel would be an important factor too. Some people would cherish it because your loving hands made it. Some people would only want it if it was perfect. You know who she is. What would she want?
On Edit:
Gosh, I love it that we are of like minds and beating on our keyboards at the same time. Deema, I just saw your update on Sadiemaes response. Your a sweetheart. The gift is in the giving.

Many of the quilts I post here have been washed.

I love quilts that are "wrinkly." Looking at your pictures. I would be thrilled to get that quilt. I think it is charming, honestly. :)

It looks NICE on the pictures.

If it shrank/puckered evenly, I would leave it alone.

I honestly think it just gives it that antiqued look. It is very beautiful. I think you should go ahead and give it to her.

Give her that one and explain what happened and tell her you are going to make her another one or try to repair that one..she will understand...I would wash it again and try to block it out on a big sewing table so it will stretch a little..

From the pictures, I think it looks like it is supposed to after washing. I think its gorgeous! Try pressing it with a steam iron. Lots of folks love the crinkled look ,myself included. I do not wash my fabric for that reason, Although that being said , if it is dark colors and I think it may bleed , I do pre-wash. My vote is ... wash/dampen , air dry on clothesline or railing and press. :-D

it looks exactly like it should just the way it is.

it's all snuggly-wuggly and welcoming.

:thumbup: