I have that set, I just used a pencil and traced around the template and then cut out both circles. Since the seam allowance is totally on the inside it doesn't show so you can just guesstimate your seam allowance.
If you are making the small ornament sized one, I did find that it made a better ornament and turned nicer when I used interfacing on one of the circles.
I just used the square one for pressing. Did you buy the pattern. I have to admit I found it annoying that it came without any directions.