You are all so encouraging...thank you.
Lucky Patsy's "Mom", no, no special stich. Just a plain old running stitch, gathered on the needle til it's full, then pull through, then a little back stitch to keep the tension. I got it from Ginny Beyer's hand quilting book. What's really funny is that in the book, she describes the stitch and process, and relates that she learned the technique making Barbie clothes when she was little. Hit home with me, since I must have been making the same Barbie clothes, because I was sewing back then in the same way.
:D
Now I really have to get moving on it. I was to make my soon-to-be 13 year old daughter an applique quilt with a red and purple dragon...that is, until I showed her Tim's Compass Star last night. Now THAT'S what she wants. Wish me luck. Don't know whether it would be easier to do that one by hand or by machine.