Why you would need more the 40 stitches is beyond me LOL MCN need 3 basic stitches, Straight, zig zag & tripple zig zag. Plus it helps to have an overlocker LOL.

BF, I personally prefer to put fluffy sides together have the knitt on the outer. Pre wash it befor eyou sew it as it shrinks. But if you did a say 30 by 30 square (for example, bigger might be better) then you would have a trifold. 2 layers make your square folded into 3 gives you 6 layers.