I keep searching for background information on Nepal to supplement my knowledge of the pagoda. In my searching I have found the "Norbulingka Institute" which was set up to preserve the traditional arts of Tibet. This is right next door to Nepal so it will have had some influence on it's culture.
It was here that if found that" Applique Thangka" is one of the traditional arts. The section on Applique starts with an introduction, then the process, training and finally the Master. The subject matter is Tibetian but the process is familiar. Embroidery is an art that can be found in nearly every culture. The other interesting thing on this site is that they have a doll museum. These are beautiful.
There are lots of carvings of the Budda on the temple. This site has a page of different appliques in it's gallery. Many are applique enhanced with embroidery.