What's the correct way?

[Miitan]

I'm assuming the Qu in Miquo'te is like that in spanish or french (quelle blague!) rather than in english (quotation = Kwo-tay-shun).

Except it's Miqo'te and not Miquo'te, and in Japanese it uses the katakana 'ko' which lends credence to this pronunciation.