PaperPrincess

I would use a muslin foundation and the turn and flip method. draw your general stocking outline, but have a couple inches extra around it. I probably would go with a larger seam allowance on those fabrics that are fraying, 1/2"? Check your velvet for fraying, some fray like crazy others don't so you might be able to get away with a slightly narrower hem, but there's not a lot you can do with the bulk. Just try and position it so you are attaching thicker fabrics next to thinner ones. I would piece the whole thing first, going about an inch past your outline, then go back & embroider and embellish. Next, I would check your muslin for the stocking outline. Piecing and embellishing can pull it out of alignment. Adjust if necessary, do a stay stitch on the line, then cut adding the seam allowance. I would add the lace next, putting the ruffle edge toward the stocking & machine baste right on your stay stitch. I would then place the right side of the stocking on a rectangle of your backing fabric & sew on the same line as before. Don't catch the ruffle of the lace. Add a ribbon loop to hang. Cut the backing fabric and clip the curves. I personally wouldn't line it, just serge or zig zag the edge. I would just bind or add a cuff at the top to finish. If you make the cuff with a finished overlap, you don't have to mess around trying to make it fit exactly. Whew! Hope some of my wandering reply helps!!