Starting a seed with a peat pellet is very simple.

Soak compressed peat pellet in water(a little bit warm speeds it up) in a bowl or tray until it expands and is no longer hard.

Simply place seed in exposed peat and push down gently. You can use finger, tooth pick, pen cap etc. Ensure it is covered with peat over top.

Peat pellet with seed can then be put into a small seed starter tray with dome or even a small clear storage tote. This is important to maintain optimal humidity. A seedling heat mat works well to keep the right amount of heat. Place in area that has light. Sometimes the sun or grow light can generate enough heat to make seed germinate and sprout.