What do you all think is the best for bedding?

Whether it be wood chips, paper shreds, or blankets & towels. What does your bunny like best and what is safest and healthiest? My bun loves flipping down in soft blankets and towels, but I have cedar shavings in her cage with her around her litter box for absorbency and Timothy hay for her to lay with and graze on. I'm debating putting ba small blankey in with her but am not sure. All thoughts are welcome!