I do it this way
Cut some shallow nock grooves in first so you can measure equal lengths of overlays.
1. Mask off the area you will glue on the overlay, sand it well...clean it well
2. Using smooth on (as it sands very well and it is the strongest) glue the overlays on ( I do not preglue the overlay stack, nor due I pretaper them). Clamp it with spring clamps.
3. Remove the tape off the area you masked and clean up all the excess. Let it bake at a lower temp than you glued the bow up at.
4. Out of the oven, remask the area (double it up). Take it to the spindle sander with 220 grit paper and grind the overlays to fade them into the limbs (I use the large side of my ridgid osc. belt sander)...sand until it just touches the tape.
5. Finish it by hand with 120 grit, then 220. Do not be afraid to sand just a bit into the limb glass (just not aggressively of course) For whatever reason after I finish sanding I put a drop of thin ca glue on it and rub it in. At this point, if you run you finger along the limbs up the overlays you should not feel any transition.
Then I proceed to trap or otherwise finish the limbs. If you wait to finish the limbs and shape the tips.