Found a solution that works:
$('input[name="edit-items"]').toggle(function() {
$(this).attr('value', 'Finish editing');
(shoppingList.$ingrLinks).unbind('click', shoppingList.ingredients) // disable highlighting items
.removeAttr('href');
$('.editme').editable("enable");
$('.editme').editable('http://localhost:8000/edit-ingredient/');
}, function() {
$(this).attr('value', 'Edit item');
(shoppingList.$ingrLinks).attr('href', '#');
$('.editme').editable("disable");
(shoppingList.$ingrLinks).bind('click', shoppingList.ingredients) // re-enable highlighting items
});