I'm with ArlaJo (maybe it's a Washington thing). Applique or handwork in general is not one of my better skills and I use the inside out method. I sew the interface to the top side of the fabric using tiny stitches. You can see through the fusing to the design in the fabric or you can draw it.
Yesterday I bought a box of scraps and in them were some nice smooth bunny rabbit shapes already cut out and ironed on with freezer paper but not yet trimmed out of the fabric, I'm thinking maybe I should work with them. Then the reminder comes in my mind that "yeah, but you suck at handwork -- maybe you should let someone else have them".
I really do admire y'all who do applique. One of my quilting friends did lovely work and I learned a lot from her even if I don't put that knowledge to use. Not by her, but I remember this one quilt I saw that had bunches of grapes around the border, I swear every grape was an individual circle no bigger than the eraser on the end of a pencil -- all I can say about that is "you go quilter!" because I'm not even going to start
