Once your pieces are traced, you can go ahead and complete the articulations.

Articulations are an important aspect of any cut-out break down because without them, a puppet cannot move properly and will not look good.

If you are using deformations to animate the limbs, your articulations don't need to overlap. The deformer effect will create the joint for you.

Classical Articulation

Classical articulation is the most popular technique for basic characters. It is quite simple and produces excellent results, but it's not the most efficient method. In many instances, it causes limitations and extra drawing corrections. For example, there may be a gap in the articulation if the part is bent too far. Joint design is usually a circle; the overlapping part cannot be sent behind without showing the joint.

Classical articulation is done by erasing a part of the line from the overlay layer, leaving the colour overlapping the bottom layer. You can use this technique for all the articulations on your puppet.