All you need is an applique shape design in the shape you'd like for your patch and you can find tons of those shapes in the files section of my group Yahoo available as free downloads or you can visit the Applique category here on the website, next...

1. hoop water-soluble stabilizer

2. lay a layer of cutaway stabilizer or heavier weight fabric such as denim or canvas

3. run first color of the applique shape

4. trim the fabric or stabilizer close to the stitches all around the shape

5. run second color (it will tack down everything again if somehow you went too close to some of the stitches)

6. run the third color of the applique shape, the finishing satin stitches

7. embroider your "patch" design in the center

8. to remove the water-soluble stabilizer from around your patch without wetting your patch... use a Qtips and wet all around and it will melt away.

At step 6, you've got your patch all that's left to be done is embroidering your design in the center of it. My advice on that is before you start anything, go find your applique shape here: https://www.facebook.com/groups/myembroideryhaven/ search for APPLIQUE SHAPE in the search field and save it to your computer. In your embroidery software, match both the embroidery for your patch with the applique shape so that you can make sure the sizes of both fit together and that you like the overall effect. Save as a new design with both design becoming one design file and send that over to your machine. Just make sure the applique shape gets done first.

Have fun stitching and I hope this helps...