The proper way is which ever way works best for you. I, along with nearly everyone I know, would apply the epoxy to the mold surface, then apply the dry cloth and blot/stipple it into place to saturate the weave. Then blot with paper towels to remove excess epoxy (weight).
Here are come how-to's: (looks like the links are down due to a site overhaul)
http://www.cstsales.com/HowToArticles.htm
Or I have an article on my website: (click on "fuselage molds")
http://members.cox.net/davidfee/techniques.htm
Good luck,
-David