Print Then Cut with the DE software for the Silhouette Cameo. I have updated to 3.0.3431. Choose design, I choose the png but you can also color and put back together the svg file. For this I am going to talk about a png file.
2. add the Registration marks. 4th button at top from the right. Looks like sheet of paper with registration marks. Under style button choose your machine.
3. Now to get cut lines go to 6 button from right. Open trace window. The one with a butterfly.
Select trace area and make a box around image. Now time to play with the different settings. I turned off High Pass and moved the Threshold to 100%. The balloons on my image didn't completely yellow out but I am just tracing the outside edge so it worked for me. Trace outer edge.
4. If you are wanting a white border just use the offset and remember to take away the other cut line.
5. Choose print setting for you printer and print. Button looks like printer.
6. Put paper on mat and I add a extra light in front of my machine. Cut.