I've been diligently working on homemade Christmas gifts. I have almost everything complete with the flannel PJs for my great neices - six in all. I also decided to make a pair for granddaughter. Each pair has an appliqued initial, so that the girls can keep straight whose is whose - or mom, can when she does laundry. The process for applying the letters is quick and easy, so I thought I would share the steps with all of you.
I start by drawing my own block letters, but you can easily make them on computer paper and select from the array of fonts available in a word processing program.

Trace the letter onto a tear away stabilizer. I use tissue paper. Cut a piece of fabric for the applique letter, about 1/2" larger than the letter shape, all around.

Position your fabric on the background and place the letter, traced onto the stabilizer, on top. Pin in place. I also pin stabilizer to the back.

Using a straight stitch, sew along the outline of the letter through all layers.

Tear away the stabilizer. Your letter should look similar to my letter "J". You can use a matching or contrasting thread color.

Using sharp scissors, trim the fabric close to the stitching. Don't forget to stitch & trim center parts of letters, like in the letter "R".

This is how your applique letter will look when everything is trimmed.

Set your sewing machine to a zigzag stitch. Sew a satin stitch around the entire letter, covering the edge, including the straight stitch previously sewn.

Remove the stabilizer on the back side.

Voila! You are done.

Check out all seven pair of flannel PJs. The girls should all stay warm this winter.