There are quite a few full tutorials and threads on converting sleeping bags into quilts on a number of sites; in particular the MYOG (Make Your Own Gear) section of the backpackinglight.com forum is full of information. Unless the bag is considerably too small for you as a bag then it will certainly be large enough as a quilt, since you won't be completely wrapped in it.
The open back style of quilts will probably work rather better than a straight blanket, I'd suggest, especially if you leave about 18" sewn up as a footbox to stop the quilt from sliding off your feet in the middle of the night. Some people add straps to hold the whole thing in place around them, but I find that the most I need is usually some sort of fastening around the neck. A drawcord, or a piece of shock-cord and mini-carabiner clip, will snug in the top end nicely. The MYOG threads also discuss practicalities such as stopping the down from coating your entire house during the process (a hoover and a piece of fine cloth being key components) and many are profusely illustrated with photographs. You should find one depicting exactly the end result you're aiming for.