i prefer the looks of the blanket stitch - not so thick and more handmade looking. it can be done with the invisible thread too. if you have an applique foot you can do it easily by lining the edge of the fabric with the inside edge of the foot. then if your needle can be moved from side to side, place it in exactly the right spot to hit the applique.
without a photo this is clear as mud i suppose.
good luck oh- something else i never knew till recently...it helps to make the zig zag part of the stitch narrower as you turn sharp corners.