Okay... It's quilted as shown on 9-18-2014 posting ... now to face it.
After pressing the strips outward... I returned to the front ( see below) and stitched a 'stay' stitch just off the edge of the seam that added the strips and within that 1/8" seam allowance. You can almost see where the seam allowance is as the pale yellow strip is shadowed beyond the 1/8" seam allowance. I use the inside edge of my 1/4 inch foot to guide my now 1/16" line from the 'ditch'. You might also note at the far right, I turned under the very outer edge of these strips about 1/4" or so and stitched them. This will be important in the hand finish part of facing.