I use multiple layers of freezer paper to make my circle templates, and compass or protractor I forget which it is called has a pivot point and a place for a pencil. I do a lot of circles. I also do a reverse applique if the backing isn't going to be pieced. I use freezer paper for that too. Press it to the back of the fabric (background) cut a hole out of the middle of the circle spot leaving about 3/8 to 1/2 inch, notch it all the way around press the tabs back to form a folded edge, let it cool then remove the freezer paper, place it over the "circle" fabric use a little stick glue to hold things in place long enough to stitch around the edge. That way there is no "bulk" under the edge on your circle.