I use a medium sized PVA bag for this set up. I place some rig foam onto the point of the hook to protect the point before placing the hook pellet in the bag.
I fill the PVA bag up with pellets over 12mm. I try to keep the hook pellet within the middle part of the bag so, when the bag melts the hook pellet sits at the top of the pile and is surrounded by free pellets. This helps to disguise the hook and hook link.
When the PVA bag melts the hook pellet sits proud in the middle of a tasty looking pile of pellets, just the job to tempt a big fat carp!
A bird's eye view of the melted bag of pellets. You can see the critically balanced pellet rig nicely presented in the middle.