You could cut apart the letters attach them to steam a seam 2 and apply them to another piece of material(Machine applique) with like A for apple and attatch an apple picture or some thing with the A letter and so on thru the alphabet.
Or go by row of letters and then under that row for learning possibilites add a row of pictured items that would begin with the letters above for a matching game.
Many different ways to make it educational too.