Leather working arch punches, or wad cutters work the best. Use a piece of end grain wood under the cloth with a couple of pieces of card stock between the cloth, and wood. You should be able to cut through 15 to 20 layers at a time. Do not hit the punch with a steel hammer, use heavy wood, plastic, copper, or brass. New, or old punch, polish the inside until it shines. this will make cutting much easier.
Woody