How to use panels for embeded nodes? I use Inline Entity Form to embed nodes within nodes.*

When editing these nodes, the embedded nodes appear as one block within Panels, so I cannot re-arrange the fields inside the embedded nodes: 



I would like to split out the nodes into separate panes. I would also like to be able to re-arrange the fields in each embedded node using Panels drag-and-drop interface, as in this mock up:

 

How can I achieve this?

Mini Panels lets you get the first child node only.
Views Context gets all the embedded nodes. However, it will lump similar fields together. (e.g. all the image fields will be displayed in one pane). 

*(Embedding nodes within  nodes is useful as each separate node can hold a group of fields. The effect is similar to Field Collection, but there are extra advantages such as being able to share content between nodes).
Try using user568458's solution, but instead of displaying fields in the view, display a "fully rendered node" and set the view mode to a custom view mode.

To customize a view mode, and then configure the layout of a custom view mode, use Display Suite module.

See this about view modes.

If you activate Display Suite's sub module Panel View modes, you can then use the Panels module interface, instead of Display Suite for layouts.

EDIT
I just went to do this myself and discovered that this feature has disappeared in the latest version of Display Suite!

Bummer :(

However, you can still utilize Display Suite to a lesser degree... Sorry