I just completed a short kimono jacket (haori) for my friend Peter. I've written about it in my project page... and in my blog. It was such fun seeing it all come together the way I'd planned.
Please don't worry about cutting into your woven fabric --- it's fabric -- it's okay to cut it. In a sett such as this one - 10epi - it works best to reinforce the edges before you cut. I've included a photo of the multi-stitch zigzag I use -- but you can also use a tight straight stitch. It takes some time, but time well spent!
You really limit the possibilities of what you can do with your handwoven fabric if you don't try making items that you need to cut. Don't be afraid. Take a deep breath and JUST DO IT! You will feel great about what you will be able create once you overcome your fear of cutting!