The idea is to run the nichrome through the insulator, and then slip the insulator back onto the wire, as shown here:
(Note the credit in this image)
Unlike the picture above I do not separate the two strands. The stripped scrap of insulator, about a quarter to a half inch, is two parallel tubes connected together.
I use a little WD-40 to help slip the insulator back on.
In the following picture I have flipped the insulator's black and white side to make it all easier to see.
(This igniter has been burned)
Dip it into whatever mixture you want. Make sure to cover past the point where the insulation breaks.