I use a regular straight stitch, smaller stitch length, and I use clear monofilament thread. I stitch as close to the edge as possible.
Depending on the item, if I am going to quilt around it, I'll try to quilt right over the monofilament stitching.
In the pic below you can see both the monofilament and my quilting stitches. This item is a wall hanging, and all of the fabrics are batik. It won't be washed much.