I love SBS also as you can tell by my avatar. I do only machine work. I fuse the applique to the fusible then to the background block. Most of the time I use some kind of stablizer under it also. I use either the applique stitch or the buttonhole stitch on my Baby Lock. I have also used a very narrow, short zig-zag stitch, whichever is easier for you to manipulate around your applique pieces.