I just call them Muslims.
And I call the Palis, Philistinians (Pelishtim- invaders in Hebrew).I don't offend people for their religion, but when someone invades and assume the name of "invader" disguising it a little to make it seem a nationality, then I spell it correctly to show what they are. Arabs in Israel call themselves Falastinians. I have every right to say that it must be spelled Pelishtim, from the Hebrew word Plisha (invasion)