Laura, just on the strength of the pictures, without knowing how the quilt feels and handles, I would go with the machine blanket stitch. But it may be an idea to do a sample piece with different threads, so that you use a nice and thin thread. How about Masterpiece by Superior? You should have a pyjama party when that quilt is ready to be used again.
By the way, I have a couple of these old manual coffee grinders, but mine are brown, not green.