One possible way to crop within MDS would be the crop-embellishment-with-a-punch-shape trick. This method would work if you can get the inside of the clip to fit inside a heart punch or custom punch. It didn't quite work for me here.
So I went with option B; I used my photo editing software to complete the job. The software I used is Photoshop Elements, and other programs may work as well. This key is that your finished edited file be a .png file type.
I created a video so you can see the process.