Was it like when you baste around a circle to make a yo-yo? That's what it sounds like. I would think that you can use that concept, just don't pull it completely together.
Are you wanting to make the circles for applique? If so, I would recommend sewing the circles to a muslin or interfacing then slice the backing and pull the top right side out. This method helps me keep my circles round. Here is a short video that might help.
http://www.youtube.com/watch?v=8ChE9UBWA8A