Thank you so much girls for your replies. Hadn't thought about Hawaiian quilts hmmmm.
I cut a 60" square last night of another fabric and some pretty roses in broderie Peres. Thought I could practice appliquing them in the middle as a nice table cloth for my mum. No issue with the applique as such, just the great wad of bunched up fabric in the crook of my hand so I can have my thumb clear on top. I tried pinching the background along with the applique between thumb and fingers, so the fabric was covering my thumb, and I felt like a muppet wearing mittens. Lets just say my stitching became rather primitive lol.
I'm thinking it would also help if my background fabric was lighter weight than quilters cotton, scrunch up easier, but everything I have that's softer/thinner pulls off grain too easily without that weight.
I know this can be done!!!!!!!!!!!!!