So let's start with why I was so frustrated with my fabric...
I started with my quilting cottons and general cotton fabrics since that's what I have the most of. Once I got them all separated, I sorted them by colors. All of my fabrics will be stored in these black wicker baskets from JoAnn Fabrics (I already had some around half of the ones I needed). I ended up cutting off the handles so that i could put the shelves in the cabinet closer together and fit a third shelf in, heehee.
Top Middle: Reds, oranges, yellows
Top Right: Greens, teals
Middle Left: Special collections and favorites
Middle Middle: Novelty & Holiday prints
Middle Right: Pinks
Bottom Left: Purples
Bottom Middle: Blues
Bottom Right...Notice I didn't show you the ninth basket for my cottons. For the last basket, I want to use it to keep all of my strips and small pieces for applique (similar to how Teresa Did it). For now, I just separated any pieces of fabrics that were too small to fold or were long strips and threw them in the last basket.
With those nine baskets done, I had filled my main cabinet and was ready to move onto the smaller cabinet that would hold 6 baskets. The plan was to fit ALL my other fabrics into the remaining six baskets but as soon as I started sorting the t-shirt scraps, I realized I had a lot more than I originally thought.
Last but not least, I had to organize my batting scraps. I have three sizes of batting scraps: really narrow strips that I use for test pieces or packing material, strips that are 8" -12" wide that can be used for things like pot holders or other small projects, and larger pieces that could be used to make placemats or tablerunners. I also happen to have three kinds of batting: cotton, bamboo and polyester. I sorted by size and type and folded neatly. Then I just put the batting into two neat piles in my hidden cabinet, with my poly-fil bags behind the batting scraps.