Using Knife Tool to place specific Elements behind others in design:

1. Create 2 circles--different colors (border on them only)

2. Overlap them
3. Go to Object Menu<Expand<Stroke (put a check next to that only)
4. Find knife tool under the Eraser (looks like a steak knife)
5. Slice across near intersection of circles
6. Slice across near inner part of circle
7. Ungroup (Object<Ungroup)
8. Select little section and send back (Command, [---left facing bracket)