I like for my labels to "stick out" or show up -- somewhat. So if it were me, I'd use the pink fabric or the muslin, but lean more toward the pink. It doesn't have to be a large label, but sometimes I write sentiments on my labels, so they get kind of big. I also like to use a permanent marker and hand-write my labels so the recipient has a personal knowledge of my handwriting, and it looks more personal. BUT I do like the looks of a machine embroidered label also.