This is the "Spotlight" technique!
I love how easy and quick it actually is!
Simply stamp your image then punch an area (or two) out. (Here I used a 1" circle punch)
Layer up your image as normal.
Now to cover up those ugly holes....
Use coordinating cardstock; punch a bigger circle. (Here I used a 1 1/4" circle punch).
Adhere your punched image to the larger solid punch piece and adhere back to your orginal stamped image!