The paper you mentioned is parchment paper and it can be used for anything for which you need an ironingsheet. Because it's non-stick, it's especially good for any fusible applications, - applique as you mentioned is one.
lots of folks use a spoon, especially a grapefruit spoon as the tool to help put in quilting safety pins...holds the fabric down as you push the pin thru - the serrations on the graprfruit spoon can help keep the pointed end of the pin from moving around when you try to close it.