There is a good video from the Watch Repair Channel on preparing and applying lume. Below I present my own attempt.
I wanted to add lume to an hour hand which has a recess for that purpose. I used a Bergeon toolkit which include the lume, a resin, a thinner, a mixing cup and a tool to apply the lume. Any cup would do and the specific tool can be replaced by any oiler.
I applied the lume without worrying too much about it spilling over as I intended to re-polish the hands anyway with lapping paper. The re-polishing should be done very carefully without going over the lume that should stay as otherwise it will introduce contaminants and the lume will look dirty.
In another style of hands, I created a hole where the lume would go and then used the same tools to apply lume on the bottom side of the hand, letting the lume fill the hole and stick to the sides. To do this, you can either use a balance cock pole or simply a toothpick stuck in cork.