If you are going to be using your machine to sew it, I would use the stitch that takes two stitches out side the applique, and one bite in, I do machine applique all the time and this is what I use, sorry that I don't know the name of the stitch. When I use pictures that are printed in material I use June Taylors Computer printer fabric(white fabric,pfd in the 81/2 x 11) this is the best that I or any of my fellow quilter friends have found. You get a really good deal on http//:
www.junetaylor.com (shoot I never get the link thing correct. The number on the package is JT-858computer fabric. Good luck and enjoy.