1. If you fuse the applique first and then zig zag tight it will be OK. I always use Fray Check when I applique at start/end point.
2. Look at coloring books at dollar store or on line for pic of animals. Bunnies, dogs, deer, etc. (Is this a boy quilt?)
In this thread I showed block pattern for Q5 quilt. Easy pattern and you wouldn't need lots of animals. 12" block for animals and finishes to 18"...just a thought.
What block would you use?