Reverse applique can be achieved with heavyweight garments, such as sweatshirts with a felt or polar fleece insert (as shown), or with lightweight garments, such as a T-shirt with a portion of T-shirt for the insert. 

Prepare to sew the garment with a selected piece of insert material and a single or double piece of backing for stability.

Place the insert and the piece(s) of backing inside the embroidery area;  then hoop the garment as normal.

Make sure that your insert is placed where it will be "visible" after sewing.

Sew the design, using a thread color that compliments both the outer garment and the insert.

The finished sewn design is now ready to be taken out of the embroidery hoop.

Using a small pair of scissors, puncture a hole near the edge of the embroidered letter, then cut close to the edge around the perimeter of the entire letter.

You may experiment with this step;  either cutting closer to or farther away from the embroidered outline.  Varying the amount of fabric that remains can give a different look as the garment is washed and the exposed fabric "rolls" or frays.

Do not cut out the center holes of letters, such as A, B, O, R, etc.

 Your finished product will give a unique, 3-D look that is easy and fun to achieve!