Flooring Tile - ceramic tile above mouldings???

In our living room, I would like to put a row or two of small square ceramic tile (1/2 - 1 inch in size) right above/resting on the wood moulding that's about 3 inches high.

My question is, should I use a ceramic glue, or use the mortar? (if mortar is used, do they sell notched trowels that small?)

Would I still need to grout if I use either one?

Any help or website suggestion is very much appreciated.
Thanks, Marci in WA

Check the tile section at your local home center; you should find tile adhesive in small containers (pt/qt) for patching and small job work. I've got a small container of stuff that says it's both an adhesive AND grout for small jobs. No need for notched trowel for what you plan. Just put a dab in the middle of the tile back and press into place. Use enough to do the job, but not so much as to have a big gob ooze out when you press it in place.

Grout would be a matter of visual effect desired; it is not related to the adhesive method used on the tiles.