Not sure if this would work for you but with my KNK I can cut contact or adhesive vinyl, leaving the backing paper intact. It is a combination of getting the blade length and pressure just right (can you alter these on a Cricut?)
After cutting, weed out the background (the lettering in your case), leaving the parts you want in place on the backing and the backing paper intact. Then use low tack masking tape to cover over the entire surface of the project (or perhaps just the cut outs?) and lift it off the backing paper and onto your project. Press down firmly over the contact areas and gently peel off the masking tape.
I've managed to transfer things onto paper in this way using the least tacky masking tape you can get - in Australia, I think it was purple.
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Cricut stencil?
