This is what I was thinking. Take every thing off after the the green with blue cornerstones border around the yellow. If you take it off carefully, it could make a snuggly back or a whole other crib quilt.

I think I would just take a big chunk out of the middle and sew it back together and use the rest as binding.

Jan I hope you successfully figured out how to resize your toddler quilt. Just wanted to tell you that I loved it. Do you remember where you got the balloon animals flannel or what it is called? That is so darn cute!