Ohhhh Denise!!
I think (like most have said) to not do anything right now...it is just, just too soon!
I know when Buddy (my first small dog ever - a Shih-tzu) had to be put to sleep, we left his stuff alone for awhile, then as we moved, I had boxed them all up w/ all of his paperwork, etc. We have been moved for about 6 years and I never went through that box until last year! I didn't even think about using any of it for Mojo...I don't know why, I think I just tried to forget about it. We sold everything in a garage sale. - and of course, that money went to buy Mojo things.
I love the idea of using some of her clothing as a blanket...I have seen quilts done that way from tee shirts received through out school/sports - my grandmother one some for my cousins.
Sending big hugs!