stablizer is usually not used for hand-needle turn applique-
be sure and reverse your letters if you print them otherwise they will be backwards
you could use freezer paper- draw your letters on the paper side- press the plastic side to the right side of your fabric- cut out leaving a 1/8"-1/4" (turn under) amount around the outside (and inside of any areas that will be cut out and turned under)
check out the tutorials on needle turn applique - utube has lots of tutorials- but i think there are a number here in the tutorial section of the board.
as for (font???) i would choose a fairly basic one --- you don't want it too ornate.