here it is step by step:
http://www.hookedonneedles.com/2008/07/embroidering-on-velvet-with-hoop.html

I have used the technique that Deanna linked to. Now I do it with thin tissue or tracing paper. I find it easier to remove. Love the eye candy!

I must say, that tutorial link was fascinating. Very clear and well thought-out. It makes me want to do some embroidery on velvet...

http://www.needlenthread.com/2011/08/goldwork-on-velvet-transferring-embroidery-design.html

here's another good link. i always go to this site with an embroidery problem. she has great videos on creating different stitches as well.

Melly
If I have something to do on velvet I trace the design on a paper of velum quality, then using the sewing machine and an average sized needle I just stitch over all of the lines of the design. Then using powdered chalk I do what was called "pounce method" in the days when I learned....lay the paper with holes over the place where you want the design, loosely baste and then put chalk on the paper and gently rub..the design transfers and I use a chalk that is light for dark fabrics and dark for light fabrics....I would use white or yellow on this velvet of yours. Chalk finds places to live in the velvet and lasts for about as long as it takes me to embroider my design...can always lay the paper back on the velvet and re-chalk if the design is large and some of the chalk disappears.

Kristin

Looks like you have plenty of good suggestions. I think I would just trying stitching through the paper with a sort of tacking stitch and then ripping away the paper. What is the other side like, could you put the design on the reverse.
Well, good luck whatever you decide on.