I have a contract for deed with my daughter. We have agreed we want to cancell the contact. What's best? Quit claim, warranty deed, mutual cancellation of contract?

Well first there should not have to be any "deed" transfers, if you did a proper contract for deed, they were never given a copy and no deed was done for a contract.

Normally merely a agreement that both sides have agreed to cancell the contract.

What do you expect from this cancellation? Are you the owner and your daughter was buying from you or vice versa? What does the owner now want to do with the property?