It doesn't sound like a very good idea to me JJL, because, unless it is knitted with really tiny stitches your design is going to disappear into the wool.
Have you thought about doing the design as a badge/patch and then hand stitching it in position. (Or do something in free standing lace and then attach it)
IF the knitting is REALLY tight you could treat it like you would a towel - and float some water soluble stabilizer on top to hold the stitches above the yarn.
































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