I've used freezer paper and it works. Lately I've been using Applique Fiber by Judy Rohret (
http://www.whenquiltsfly.com/) $6 for 2 yds. + instructions. Judy lives in my area.
Sharon Schamber also sells applique stabilizer at $14.95 for 5 yards:
http://sharonschamber.com/shopping%2...ccessories.htm
Both the fiber and stabilizer are applied using washable Elmer's glue, stitched with invisible thread, and soaked to remove the glue. (Fray Check) is used for inner corners and points. The fiber is very light weight and becomes soft after soaking. The key is to prewash the applique fabrics but not the background fabric which then shrinks slightly when soaked pulling the applique seam under. It then looks like needle-turned applique.
Here is the front of the Applique Fiber package and a block from Affairs of the Heart: