That "posterazor" program is still available (I just checked).
I believe I would applique it. I would cut the blue star the size I wanted. I believe I would REALLY starch the blue fabric as you're working with lots of bias (or close) edges for a while. I think I would use sashing for the inside white stripe and the outside blue stripe. I'd sew the inside corners of the stripes by hand. Then I would use fusible (and turn it to produce the edge) to attach it to the main fabric and sew it down. If I had the ability, I'd quilt it FMQ in the star in concentric star shapes.
That is a hypothetical suggestion, as I've never done anything like it.
bkay