Step 2: Cutting your fabric circles
To cut the fabric circles needed to create yo-yos, trace your template with pen or air-soluble marker.
Then cut out the circle.
I find that I like to do yo-yos in stages so I trace a whole bunch of circles, then I cut them all out, then I sew them all.
Note that if you are using a CD as a template, ignore the hole in the middle and only trace and cut around the outside edge. :)