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A famous example of applique is the Hastings Embroidery whose designs are appliqued onto the backing fabric using a variety of embroidery stitches.
Applique is also used extensively in quilting. "Dresden Plate" and "Sunbonnet Sue" are just two examples of well-known quilt blocks that use both patchwork and applique to construct.
Baltimore album quilts and Amish are famous examples of applique quilts due to the quality of their designs.