Progress? or Disaster?

Hello everyone... I have been working very hard on this little piece, made on a damask table napkin.
It's moving along...

 

 
 

 The design is woven into the linen itself, and the color was handpainted on the napkin.   So, my inspiration for most of the quilting was from the original piece.

I found some vintage lace for the trim, on a piece of blue underlayment - so sweet - still have to miter the corners down.



But - arckkkkk - do you see those lines?  those are my basting lines - I used wash away thread, but the depression from the stitching won't go away... I have gotten them to fade a little bit with steam and rubbing.... 

any body have a secret remedy?  Please send it, post haste!!!!

Keep quilting,

Kate