TOWELS WITH A TWIST. We incorporated layers of colored organza as the appliqué material, which lends an elegant, lace-like feature to these towel designs. Cutwork is generally a 3-step process. The first step features a specially digitized cutting stitch which secures the towel to the stabilizer while you complete the second step; which is to cut away the base material from inside the cutting stitch. Finally, follow your design’s numbered machine steps at the end of this tutorial to complete the remaining decorative embroidery and VOILA! You are left with a unique, handmade towel to hang in your bathroom or kitchen.