I don't like raw edge applique, but when I've done it, I've used iron on 2 sided interfacing, and satin stitch. My preferred method of applique: I like to sew one sided iron on interfacing to the applique (sew sticky side to the right side of the applique, turn inside out, so that the iron-on side is down toward the quilt). Then trim some of the interfacing away from the center (unless a very small piece) and iron on, and stitch with a satin stitch. This method wouldn't require a satin stitch, but I like the look of a satin stitch.