I put fusible (steam-a-seam 2) on the back of the leather and cut them out just like normal. Next I stuck them to the fabric. The only difference was that I ironed them on from the back side. It would take a long time for the heat to make it all the way through the leather, so ironing from the back is easier as it's only a layer of cotton. I don't think I could do this with other fusible products because they don't stick, but Steam-a-Seam 2 worked wonderfully.
Here's the block all stuck down.
And a close up. The metallic leather dots are so much fun!
I used a Glide 40-weight Poly thread in Wheat to do the blanket stitching. I did use a smaller stitch size on the dots and center circle than on all the kite shapes.
The final block! So much fun. I'm excited to see what block 2 has in store.