if you cut your binding at 2 1/2", fold in half-press it is 1 1/4" wide- stitch to one side of front using a 1/4" seam allowance then fold to the other side- it should be brought over the machine stitches- and be *full* if you enter your quilts into any contests/shows the judges check to be sure the binding is uniformly full- not left empty. if you prefer to have less of a (fold-over) you could cut your binding strips at 2" instead of 2 1/2- which will give you a narrower fold over allowance. the folded edge should cover the line of machine stitching then be hand stitched in place.