I would use batting and at least some stitching. They may work well with out the quilting, but when washed everything may shift around.

beverly

I would use the batting. That's what I've done with plain cotton fabric and it worked just fine.

If you were making mug rugs would you use these same ideas,eg, batting no Insulbrite but add quilting?
Theresa

Depending on how thick your terrycloth is, the batting may not be necessary. Make sure your machine can handle all those layers. If you are going to put a binding around them, that would be at least 6 layers of regular fabric, two layers of terrycloth, and one layer of batting. Can your machine handle all nine layers? You definitely want to do some stitching, even if it is just a big "X" on the potholder.

I don't see the point at all of using batting for a coaster if you are using two layers of terrycloth. I also don't think it is necessary to add the extra stitching, but it certainly wouldn't hurt anything.

Oh, I think I misread your post. You aren't just using the terrycloth on the inside, are you? It appears that the terrycloth with be the outer layers. In that case, you might be better off using a layer of batting.