1:

Hoop your fabric tightly in the smallest possible hoop. Use a fabric that has a good stability and is not too soft. It works best when the fabric is starched. Attach your hoop to the machine and start to embroider.

 2:

After the machine has stopped, take the hoop out of the machine. Do not unhoop the fabric. Lay the hoop over a piece of corrugated cardboard on on a flat surface. Take an exacto knife and cut out the holes. Do not cut too close to the stitched line; leave about a 1 mm margin of fabric.

 3:

Cut a piece of heavy, water soluble backing large enough to cover the design. Put it on the backside of the hoop.

 4:

Turn the hoop again to the front side and pin the water-soluble backing securely to the hooped fabric.

 5:

Then attach the hoop again to your machine, and finish the embroidery. To finish, dissolve the water soluble stabilizer. It disappears completely. Now you have wonderful, clean cutwork embroidery!