That is so cute! I took a class at the City Quilter called something along the lines of aplique without tears. We cut out templates out of freezer paper and then ironed them onto the back of the fabric. We cut out the fabric 1/8 or 1/4" bigger than the template and then folded the edges over rhe freezer paper and pressed with iron. Once the edges were turned over we removed the freezer paper and were ready to start the aplique. Good luck!
By the way, I ran out last night to a horribly overpriced LQS and got myself an aplique kit just to find out it is not needle turn but fusible. I was maaaaad!