I have done raw edge applique on baby quilts that get washed a lot. I used a fusible to secure the applique and then did a tight decorative stitch around the edge. My machine was older so it didn't have a blanket stitch so I just picked another stitch that looked fine. You can also do a small zig zag if you don't have a blanket stitch on your machine. The applique looks crisp and neat even after washing. I did quilt over the applique as well as some of them were quite large. I'm usually very fussy about things being finished but this worked for me.