This is the second project we did with Sulky on embroidering with sheer lightweight fabrics (chiffon, organza, tulle, silk, challis, etc) here. You will want to head over to this first post to see the initial steps and refer to the video we did here.
For the sleeves on this design we did a flutter sleeve. A flutter sleeve is basically a flounce. To figure out the measurement for a flounce check out this post here or just free style it.