I trace my designs on lightweight interfacing (used in garment sewing). I then put it on top of my fabric and stitch all the way around the design on the line I have drawn. Trim the edges to about 1/4" and be sure to snip around curved seams. Then, cut a small slit in the interfacing and turn the piece inside out. Press, and it's ready to be basted down. The interfacing is so soft, it's no problem to hand stitch. You don't have any raw edges to turn under (I hate that) and no paper to worry about peeling off. If I don't do it this way, I applique in the hoop on my Janome 10001. There are some really cute applique designs out there. This isn't the conventional way, but after much trial and error, it works for me!