A Cutsew is a garment that is styled like a blouse

Blouse

A blouse is a loose-fitting upper garment that was formerly worn by workmen, peasants, artists, women and children. It is typically gathered at the waist so that it hangs loosely over the wearer's body. Today, the word most commonly refers to a woman's shirt but can also refer to a man's shirt if...

 or dress shirt

Dress shirt

A shirt, or dress shirt in American English, is a garment with a collar, a full-length opening at the front from the collar to the hem, and sleeves with cuffs. Shirts are predominantly used by men, since women usually wear blouses...

, yet is made out of jersey

Jersey (clothing)

A jersey is an item of knitted clothing, traditionally in wool or cotton, with sleeves, worn as a pullover, as it does not open at the front, unlike a cardigan. It is usually close-fitting and machine knitted in contrast to a guernsey that is more often hand knit with a thicker yarn...

 (a fabric commonly used to make t-shirt

T-shirt

A T-shirt is a style of shirt. A T-shirt is buttonless and collarless, with short sleeves and frequently a round neck line....

s) and can feature embellishments such as lace. The term is commonly used when pertaining to the Lolita fashion

Lolita fashion

is a fashion subculture originating in Japan that is based on Victorian-era clothing as well as costumes from the Rococo period, but the style has expanded greatly beyond these two. The Lolita look began primarily as one of modesty with a focus on quality in both material and manufacture of garments...

, since this type of garment is common in the fashion.

It is believed that the term came from combining the two terms cut and sew; the garment is usually made with a serger or an overlock

Overlock

An overlock stitch sews over the edge of one or two pieces of cloth for edging, hemming or seaming. Usually an overlock sewing machine will cut the edges of the cloth as they are fed through , though some are made without cutters...

er which cuts the fabric and sews it together.
The word cutsaw comes from the Japanese pronunciation of the same term.