I have never used EQ7 but I assume the design can print out. Will it print out as a grid or can you print it on graph paper? Its a simple and clean lined picture so once you get the actual measurements for the size quilt you want you can draw the design (with a ruler, additional shapes and a little free hand) on freezer paper or stabilizer, cut out the different parts, iron on and machine appliqué using black thread where you want the outline or bias tape as you mentioned. You DGD can help iron it on the backing and maybe help stitch the longer straight lines with you. Just seems to lend itself to appliqué more than patchwork in Mho. It's going to be adorable please post pics when you're done!!!!