I also use plates, cups etc for my circle templates. I have a circle cutting rotary cutter that is like a compass with rotary cutter instead of a pencil. I have a hard time making good circles with it. I have had the best success with fusing it to freezer paper before I cut. I hate to applique. There is a method for doing inset circles totally by machine. I use it all the time. I just taught a demo at my quilt guild on it. Several people tried it and said it was easy. I can't get the link to transfer on here. It is Dale Fleming method and it is called the 6 minute circle.