Cut Chenille Quilt

I went yesterday to my local quilt shop and the owner had the most beautiful cuddly cut chenille baby quilt there.
It looks pretty easy to make and I thought it would be great to make a lap quilt or bigger from the Flannel that I got at 50% off.

I found these intructions online:
http://www.aestheticnest.com/2010/08/sewing-heirloom-cut-chenille-baby.html

Has anyone ever made one of these and if so how would I go about making a bigger quilt. I would prefer different (layered) blocks, maybe 20"x20" but I don`t know how you would go about to attach all the blocks together. Was thinking maybe like a rag quilt, with seams facing right side, but not sure how that would fray afterwards or if that would become way to bulky.
Or maybe sashing between the blocks, but then I need sashing for front and back.

Any ideas or input would be aprechiated.

Thea