I used a similar panel in a quilt. I bought some batting that is normally used for potholders (Thin and dense), basted it around each panel, then proceded to single stitch around the main item (engine, train, etch) detail in each panel. Then I cut off excess batting, and added my sashing and other quilt pieces. Finally add your batting and backing, and machine or hand stitch. Ended up really cute. Then if you are machine stitching, just stitch in the ditch around the whole panel - no need to put a pattern through the picture.