Part II

Now is a good time to put some pins in (between the large and small circles) to keep the fabric from shifting when you cut it out.

So go ahead and cut out the large circles.

Now it's time to cut out the small circles. These aren't going to remain "donuts," so you can make a cut from the outside edge (large circle) to the inside circle. It doesn't matter where.

When you get to the small circle line, cut around that circle so you have your donut shape, or "C" shape since it now has a cut in it.