I've not done one of these but here are their instructions. I would think the fabric goes on top by their pictures. Maybe another Cuties has done these and can help. Can't wait to see the butterfly finished.
The instructions on on the page where you purchase the design. It's just above the design and says "click here for instructions......" I couldn't get the link to work.
I'm pretty sure it goes on top just by looking at the design. It should be the last part sewn.
I already gave it to my GD. My DIL loved it.. I will get a pic. It is a reverse type embroidery. The wrong side in embroidering becomes the right side. The instructions are for a flower that has a center that is the first color not the last color like the butterfly. Thanks, Judy