I have tried several ways, I really like freezer paper. This is what I do. cut out freezer paper just as you want finished applique to be, then cut fabric 1/4 inch larger all around, place fabric right side down, center freezer paper on fabric shiny side up, fold over the 1/4 inch and press with a dry iron, all the way round. after cool remove freezer paper. and lay in bits of fusable thread, and heat with the tip of your iron, Now your applique bit is ready to put onto your back ground, either by machine or by hand, I also put a few bits of fusable thread to hold applique bit to the background.
Hope that is understandable. :-)