Check the package your fusible came in to make sure it's the type that can be sewn through. Test hand sewing on the fusible to make sure you can handle it. It's a lot easier to machine quilt a fusible.

I also do my applique before quilting....I like the bright teal looking color for letters, but I think the pink would be too much.

Applique before you quilt. That way you can quilt around the applique making it stand out.