If I might offer a "help" for those who want to do hand applique with the edges turned under.. I've found it helpful to cut a template of thin cardboard 1/4" smaller than the piece of fabric.. stitch a running stitch for a drawstring around in the "seam allowance." draw it up and anchor it.. then press. you can then remove the cardboard, you have a perfectly round circle with the allowance turned under.
Does that make any sense at all?