The finished circle size as 2.5" diameter so I drew a circle in Word and added a text box in the centre. I chose a stitchy handwriting text which is widely available as a free font. Adjust the font to the size you want, you could even make it darker using bold so it will show through more. I then printed the motif and placed it under the centre circle fabric. You can see this is untrimmed and larger than the printed circle. This allows you to have room to handle it whilst you embroider, you can trim down when your stitching is done. Place the paper under the fabric and trace with a disappearing or washable fabric marker. I used a Sewline fabric pencil and sketched very lightly. Now you can embroider away!
You do need to be using a lighter background fabric for this to work, but it is a great way to get a particular style of letters on to your fabric ready to sew.