Sorry, Middysmom, was trying so hard to answer you in chat last night....it got a little crazy there for awhile.
There are so many ways to applique, both of the above answers are correct and great, it is personal choice.
It depends on what you want.
When I am going to satin stitch around an applique that I don't want a 'stiffening' behind. I cut the pieces the size I want, pin them or spray adhesive them to the block or garment, then stitch around them with a close stitch.
When I want to add demension to the applique, I will spray adhesive a little batting to the back then turn under the scant 1/4 inch by hand or by machine with the blanket stitch.
Again, I'm sorry you didn't see my private messages last night to you. If you still have questions......let us know. SOMEONE is bound to be able to give you an answer that makes better sense than me, but my methods have worked for me for 37 years. :shock: I began applique with first baby and before applique 'was cool' as the song goes. :lol: :lol: