I recently made letters that I appliqued to a quilt.
I typed what I wanted in word, chose the font I liked - then played around with the font size until it fit the quilt. I then traced the letters onto my steam-a-seam - cut them out - and appliqued them.
Just remember to trace them backwards.
(I taped them backwards on my window as a "light box" then taped the steam-a-seam over it to trace).