Although I have never done this, I have been asked many times how to cut fabric with the Cricut. The following was posted in the Cricut newletter:
How to cut fabric with the Cricut
Q: I just got my Cricut and am so excited! Although I do a few paper crafts, I mainly got it to cut fabric for appliqué shapes to quilt & sew. But how on earth do you cut fabric with this thing?!? I tried ironing on a fusible backing onto the fabric and changing the blade depth and pressure - but my fabric always bunches up. Any tips would be great. Thank you so much!!!
A: Here is some info from You Had Me at Craft:
1. Always use a mat for just fabric...take the time and use a marker and print on the top of the mat cover (FABRIC).
2. Use a quality interfacing or bonding product. A quality product takes a little more time to use but the results are the best. It can be found at JoAnn's fabric store and it has to be cut so you buy it by the yard.
3. Start cutting your fabric to the size of the mat you will be using. Then cut your bonding product to that size also. Follow with ironing your fabric to get wrinkles out. Then apply the interface bonding to the back of fabric. Turn both the fabric and interface bonding product over and iron the fabric top. DO NOT iron the bonding side you will have a mess on your iron trust me on that one.
4. Applying your fabric to the mat: Make sure it’s on smoothly. You will see some wrinkles; don’t get upset they won’t show on the fabric after it is cut.
5. Setting your Cricut up for the cut: PRESSURE is MAX. Speed is MAX. Select Multi Cut and then set the blade at 5. Now you're ready to CUT.
6. Remove your fabric and slowly peel away from mat using your spatula. Be careful as you go. You now have to remove the paper backing.
7. Now you have a choice to either sew the cut fabric onto your project or just iron it on.