After pulling off the paper, could you fuse the circle to your project? In other words, did the paper leave a fusible residue on the fabric>
I have used double or triple layer thicknesses of freezer paper to make circles. I fuse the paper layers to themselves to give a heavier product, then draw my circle and cut out, iron on to back of fabric, cut that out slightly larger than the paper, paint the edge with starch, fold the wet edge over and iron dry. Then I remove the freezer paper circle and I have a nice crisp folded edge to applique, but I have to position and sew down. The fabric isn't fusible.