Waffle Weave Blankets??

I have this baby blanket that I am trying to get a name and date one.. just a normal all cotton waffle weave type blanket, thin. The problem is I can't get it to sew well. I have 2 pieces of tear away backing and of course solvay on the top but the stretch in the fabric is pushing it all together.... Help :) Suggestions

Location: 
United States

I would use an adhesive tearaway and you may want to decrease the density as much as you can. If your game you can also try to decrease both your upper and lower thread tensions, but you have to be comfortable with this and lower you speed.