I love to applique using the fusible method and have been giving this some thought. I think your best avenue would be to use the method Rush8888 suggests. You can find a video of this at Nancy's Notions where she does it with the center of a dresden plate design. = With the dark background I see no other way. Even if you do the cutting method you will still see 1/4 inch seam behind your applique. Sounds really cute. I just finished puppy dogs, but these were muslin blocks with sashing. Good luck