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Desperate for Advice

I just finished a Signature Quilt for our new Pastor as a Welcome gift from the church members. I created 2 labels (one as a test) for the quilt back using bleached muslin on my Ink Jet Printer. I heat set the ink with a dry Iron on both sides and allowed 4 days before putting it to water. I saturated the test label with water and a mild detergent, rinsed and blotted dry with paper toweling and allowed it to dry. The ink on the fabric bled and distorted. Does anyone know how to resolve this issue? You ladies are great and if I can find a resolution one of you will know. Thank You for any advice you might share. =)...

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