I usually put the seedlings in the same places I put the adult lotus, but would be interested to hear if anyone has different techniques or experience.
If you put the seed on the media before it sends out roots, they should be able to reach down into it. If roots have already come out, though, I think they should be gently surrounded by media. I don't have empirical data on this, though. I usually dimple the seed into the media (not completely submerged) when the first green shoot comes out. The roots go down and eventually a thin rhizome reaches out horizontally to put roots in a second location, and then finally fattening to form the first tuber.
