no i don't sew down the folded edge. i leave it as a little pocket.
donna

Really cute quilt. I have tried the pigma pens but find them too scratchy and don't give a nice finished look. You might want to try the Millennium Collection available either at JoAnns or Michaels. They are pigment ink, acid free, waterproof and non-bleeding. You can usually buy just 1 pen, but I got a set of 8 colors for about $13 and they have a much smoother writing tip.

I cheat and print my labels on photo fabric that goes through my color printer. It is pricey, but I usually do several labels at the same time (I'm behind in labeling quilts).

I code in letters on my machine that "writes" & stitch them on a piece of fabric - then attach to one corner of the backing by hand - it is best to do this before quilting, probably and machine stitch but I haven't - next time I will.

I've always used either a Micron pen by Pigma or Textile Marker by ZIG. A Sharpie is not permanent on fabric.
Do you have any embroidery stitches on your sewing machine? If so, that would be another option or hand embroidery.
I always sew a label on the back with my name, City, State, date finished, who/what it was made for and it's title. Yes, I do give every quilt a title.

I sometimes use the fabric labels that come in a panel and do the writing with a Pigma pen. Other times I use a picture of the recipient and the printer fabric. I have occasionally used the Pigma pens and made vines and flowers around the edges of the label and did the writing in the center. You can also use hand embroidery or machine embroidery. Crayons are another possibility. Or piece them like a small quilt block. There are lots of possibilities.