CUTWORK
cutwork
(noun) embroidery in which the design is outlined in a buttonhole stitch and the intervening material is cut away
Source: WordNet® 3.1
Etymology
Noun
cutwork (countable and uncountable, plural cutworks)
A form of embroidery in which intervening fabric is cut away
Source: Wiktionary
Cut"work` (kt"wrk`), n. (Fine Arts)
Definition: An ancient term for embroidery, esp. applied to the earliest
form of lace, or to that early embroidery on linen and the like, from
which the manufacture of lace was developed.
Source: Webster’s Unabridged Dictionary 1913 Edition