Embroidery in which the design is outlined in a buttonhole stitch and the intervening material is cut away WordNet 3.0 & Open English WordNet

Cutwork or cut work, also known as punto tagliato in Italian, is a needlework technique in which portions of a textile, typically cotton or linen, are cut away and the resulting "hole" is reinforced and filled with embroidery or needle lace. Wikipedia

A form of embroidery in which intervening fabric is cut away. Wiktionary