Yes, Yes, Yes. I use it all the time. I also have used 8 1/2 x 11 copy paper. In fact the lady who taught me said you can even use coffee filters.

I must clarify - all of my machine applique is wall hangings that do not get washed.

I took a machine appliqué class from Harriet Hargrave years ago and think you still may be able to find her book it was not hard turns out very nice we used freezer paper for template ironed on wrong side of fabric cute out 1/4 inch around pieces then used glue stick to stick to freezer tape used blind hem stitch to appleque cut small hole in the back to remove freezer paper if some was stuck to hard spritz with water and on smaller pieces I used tweezers to remove paper through the hole worked very good I also took a class from Mary Stori for another kind of appliqué where you can use a picture off fabric , fish, flower whatever lightly stuff small hole in back use a drinking straw to turn then all appliqué by hand in your wall hanging makes some great picture quilts there are so many ways to appliqué you just have to find the kind you like

Thank You ALL for the great tips/suggestions. This board never fails me when I have questions. It's wonderful! I think I'm gonna spend the day trying all of these different techniques and see which ones work best for me.

I have the same machine and do a lot of blanket stitch applique and every once in a while I forget to check the screen to see what the presser foot setting should be and what the tension should be set at!! I get tunneling if both are not correct!
Try checking those 2 things {very very simple!!} and I will bet you have no more tunneling!!!

I don't have too much info on tips for applique. I have used the freezer paper to use as a template, cut out the pattern, iron freezer paper to fabric pattern and use glue stick to apply fabric to freezer paper. Then do a hand stitch to background and then remove fp. I also have a Janome 6600 and was wondering if you would share what settings you have on your machine to do blanket stitch? I have tried and I am unable to get a good result. Any info you can give me will be appreciated.

On my Janome 6600 I use: mode 2...#35...then I check the screen and adjust the presser foot and the tension as suggested on screen...it makes a very nice blanket stitch!!

I use tear away stabilizer.

Thank You. I tried a satin stitch with the freezer paper & I like how it looks. I will be using that I think when I too make wall hangings. It's a nice clean finish.

Thank You. I have been playing around all day with the blanket stitches. I think I have a handle on what I'm doing now... well at least I hope so. :)

I'm not much help with this. I've been playing around all day with my Janome. There are 4 or 5 blanket stitches #35 - 40 (I think) mode 2. pressure foot set on 2. I'm still learning. I do want to get some heavier thread I think. I think that might look better but I'm guessing. :)