I don't know how Sandpat does this, but there is a good tutorial at this site:
http://sentimentalstitches.net/instr...-hand-applique
I personally skip a lot of this
I mark my background with washable blue marker or thin white lead pencil [Fons& Porter] depending on the shade of fabric. I mark the piece to be appliqued the same way [using ott light under the piece and plexiglass - or I put a battery operated tap light in project box for cheap lightbox]. I match the marks and either pin it down.... or when I get real lazy I simply pinch it down with my left thumb/forefinger while I place some stitches with my other hand. Be careful this only works with small pieces, unless you are real careful!! Then I pinch a little ahead on my applique piece on the marked line and needleturn. I will post pics a few weeks from now.