I hand quilt almost exclusively. Use the best fabric you can afford front and back. I use fabrics other than muslin for backings but that is my preference. I agree with starting small and not using batiks for your first project. I use Roxanne (betweens) needles. The lower the needle size, the larger the needle. I generally use Gutterman hand quilting thread but will use any brand if it's the particular color I want. I use a Thimblelady thimble. I started with the plastic one and graduated to the stainless steel version. I generally quilt in a hoop but not always. If you are using a hoop or frame, don't have your quilt sandwich 'drum tight'...have some give to your sandwich. Heard it described long ago to have it about as loose as if a cat were sitting on it.
Batting is a whole different story. You'll get lots of suggestions. I use Warm & Natural but many people find it difficult to hand quilt. I like 100% cotton. If you are looking for something very light, you can also use flannel for batting. Flannel for the backing also makes a nice cozy quilt.
Remember, most of all, hand quilting is a process - not a race. Find a comfy chair; a good light (I use halogen but it does get hot); a good TV show and quilt away. Great stress reducer! Enjoy the process.