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As you can see, the pieces are still RS together and the raw edges are lined up on the correct line on the throat plate. You can't see it, but all the excess fabric is pushed aside under the inset (top) piece so that when stitching the 1/2" seam, nothing is caught in the stitching line. Then stitch to the end.

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Burdastyle

http://burdastyle.com//techniques/easy-pretty-cornered-seams-tutorial/technique_steps/8