Despite the leave in stablizer (that Feline Fanatic described) being a little pricey (but a little goes a long way) I prefer that. I draw the reverse design with scant 1/4" seam allowance added on the stablizer, cut my fabric and use a wash-out school glue stick to turn the edges. Then just sew down with small stitches. The stablizer basically softens into nothing when washed. I don't cut out the background fabric on small applique shapes, only if a very large shape. I have not noticed it being a problem to leave in the background when long arm quilting it. If you were doing a fused applique you leave in background and add a stiff adhesive.