It could be possible, but only with a simple design.

You can, but you might have to balance your stitches a bit. Normally it is recommended that the back of your satin stitch shows a bit of the top thread - see your owner's manual. You should get it like you do in sewing. Which would mean tightening your top tension, so that both sides look nice. Try it out on some scraps.

And for the rest it is easy, just put the fabric on top and bottom instead of top only.
Good luck!

Check out embroidery library. Thought I saw something on there when I was last looking at their info files.

Great question, I have often wondered this myself when doing appliqué on a tea towel. Thank you.

hoop as normal with a stabaliser .batting and top fabric. Stitch baste stitch to hold top fabric and batting in place.
remove hoop from the machine and tape reverse fabric and applique fabric in place at back of hoop.
stitch out applique first two lines then remove hoop from machine and cut away excess applique fabric on both front and reverse. return hoop to machine and continue as per the design.
use matching thread in needle and bobbin. for the applique work. keep the design very simple.

Be careful with words as they'd be backwards on the back side of a napkin.