applique anyone?

[bklyndoll.livejournal.com]

ok, i searched through the faq/memories section and can't find it. i want to make appliques but am apparently too dim to really understand any of the instructions i've seen online. in my head, i can sort of visualize what i need to do i just don't understand what happens after you've nipped your applique and are at this stage:



please help *sighs*