I've had this in the back of mind to try for a few days, but I've been a bit busy with other things. ;)
I wanted to put the current UT freebie on a tea towel, but I didn't have any plain ones suitable. So, I embroidered the design onto white cotton fabric and then added the tea towel beneath the hoop to do the applique frame. I trimmed the white fabric away before stitching the satin stitch (using matching thread in the bobbin so it looks nice on the back.) I thought the tear away stabiliser might show a bit around the patch, but it came away very cleanly.