WOWOW, thank you all for the ideas! The one about taking the fabric applique piece and tracing around it on the fusible paper side..then cutting that out looks like I could do this one for sure!
The reason I wanted the entire cut-out fused was to especially have the fusible right up to and including the edges to prevent fraying. And yes, they do have to be machine stitch around the edge. I usually sew my fusible applique edges using the blanket/buttonhole applique stiching on my machine.
Gonna see about ordering of cut-outs!
Thanks again EVERYONE
Julie