Gillian Gibbons, 54, was arrested on Sunday for allowing her seven-year-old pupils to name the stuffed toy after Islam's holiest prophet, prompting complaints from several Muslim parents to the Ministry of Education.
She was charged with insulting religion and inciting hatred under article 125 of the Sudanese Criminal Code and if found guilty could face 40 lashes, six months in jail or a substantial fine.
The divorced mother-of-two from Liverpool is being held at Sudan's CID headquarters in Khartoum is expected to appear in court on Thursday.
Although Miss Gibbons has been visited twice by consular staff, there were concerns for her welfare after she was seen in a prison yard looking pale and scared.
Staff at Unity School where she had worked since August insisted she had made an "innocent mistake". But her teaching contract has been terminated and the school remains closed until further notice.
A spokesman for Gordon Brown said the Government was "surprised and disappointed" by the charge and said Mr Miliband's meeting with Omer Mohamed Ahmed Siddig was designed to "get a clear explanation for the rationale behind the charges and a sense of what the next steps might be".
Are we Christians outraged when the LORD our God and His Christ are mocked and ridiculed by those who blaspheme His name? Of course we are. Do we take them to court and try to get them whipped? Of course not!
Yet Islam is supposed to be the "religion of peace." Yeah, whatever.