I love applique. You'll be fine. Here's what I would do step-by-step:
1) Print out letters on your computer in exact size you want
2) Go shopping! Buy 100% cotton fabric, WonderUnder fusible web & thread that matches your applique fabric (I use Aurifil 50/2, but any lightweight cotton thread will do).
3) Place letters right side down on paper side of fusible web & trace with a pencil. By "right side down", I mean the letters should look like the backwards R in Toys'R'Us.
4) Rough cut around letters. You'll want to leave at least 1/4" around each letter ... more if you're like me & cut squares because you're more concerned about saving time than that extra 2" of fabric.
5) Fuse web to
wrong side of fabric following instructions provided.
6) Cut out letters on the drawn line.
7) Peel off paper backing & fuse applique to the
right side of your background fabric following instructions provided.
8) Set machine to blanket or applique stitch (some machines call it a "buttonhole stitch"). If you have a really, really old machine like my Singer Genie, you can make do with a Zig-Zag, but that's really not ideal. At that point, you're better off doing it by hand. If you have the option of
Needle Down, use that. Load thread that matches your applique fabric in the top & bobbin.
9) Do a small practice piece to ensure your stitch width & length look good. Doesn't have to be a letter. You can use a small fabric scrap fused to remnant fabric, just something to help you set your stitch. This is the one part that's easiest to mess up (ask me how I figured that out).
9) Slowly work your way around the applique. Bring the presser foot up & turn slightly for any gentle curves (like an S) taking a little at a time. If you want to be really fancy, you can reduce your stitch length as you approach a point (like an A) so you are able to take a stitch right at the point. It supposedly reinforces the tip, but mostly the fusible should be sufficient.
10) Quilt as desired.
11) CELEBRATE! You did it & it wasn't even that hard!
You
can do this. Just take it step by step & ask questions here if you get stuck.
