when I do applique I use freezer paper cut to the exact size and shape I want finished ap. then I cut fabric 1/4inch larger all around. Place fabric face down, (on ironing board) freezer paper shinny sid up centered on fabric. fold over the 1/4 inch all around with dry iron. once done and cooled, remove freezer paper. then I take fuzeable thread and lay all around in the folded over 1/4 inch edgeing. Now it is ready to place on my background, instead of pins I snip off a couple of small 1/2 inch pieces of fuseable thread to hold in place while I hand, or machine stitch it in place.
I have other tricks I use fuseable thread for, if any one is intrested.