The Collaborative International Dictionary of English v.0.48:

Appliqu'e \Ap`pli`qu['e]"\ (?; 277), a. [F., fr. appliquer to
   put on.]
   Ornamented with a pattern (which has been cut out of another
   color or stuff) applied or transferred to a foundation; as,
   appliqu['e] lace; appliqu['e] work.
   [1913 Webster]

Moby Thesaurus II by Grady Ward, 1.0:

31 Moby Thesaurus words for "applique":
   baste, bind, buttonhole, crochet, cross-stitch, embroider, fell,
   flap, fly, gather, imbrication, knit, lap, machine-stitch,
   overcast, overhand, overlap, overlapping, overlay, overlayer, purl,
   quilt, renter, run, saddle-stitch, seam, single-stitch, tack, tat,
   whip, whipstitch