In case anyone's still checkin this thread...
I can throw a couple of things out there. 1.) Laminating should be fairly safe, since oxygen is what causes decay. Laminating keeps it out, but isn't reversible if you ever change your mind. 2.) A color copy would be an adequate representation of the original, and they're fairly cheap now. (If you want to go that route.) 3.) If you are interested in archival preservation and use, try checking out the supplies from Light Impressions (lightimpressionsdirect.com, if I remember right). They specialize in preserving everything from newspapers to photographs and stuff like you have. They ain't cheap, but they sell books and acid free transparent sleeves of all sizes and sprays to de-acidify stuff.
Oh, if you go the scrapbook route, be careful cause with the proliferance of it, much of it isn't archival and you could cause your gramma's recipies to yellow and fade and crumble in a few years if you or somebody uses the wrong stuff.