A method and apparatus for creating a design that is melded onto an underlying layer of material that is then cut out and applied onto a final surface to produce an appliqué. The design is first created using a printer to print a design onto a top layer of “puff” or other suitable cloth material. The printed design area is cut out of the top layer material and then the bottom layer, to create a two layer appliqué that resembles a traditional stitched appliqué.