So, I removed all of the quilting from both the Dresden plate and Grandmother's fan blocks (I know, I know, it was depressing!) and then removed the two "offending" blocks.
Then I removed the appliques from the Pooh background fabric. I selected a pale pink background fabric to replace the Pooh fabric with and basted the applique pieces down again.
I hope to finish this project in the next 2-3 weeks because I will be starting another quilting class at that time and will want to work on the class project.