This pattern was not designed for the type of applique where you cut away the extra fabric. The templates are the actual applique size and after cutting out the pieces, you will place the pieces within stitched-out placement lines.
HOWEVER: You CAN use the cutaway method for your applique, but you will have to repeat the placement line after you place your fabric down and before you cut your fabric away. I do not include a second placement line or a tack down stitch in my designs.