In the presented paper, an approach for direct triangulation of 3D surfaces has been applied to a family of discrete surfaces represented by a triangular grid of arbitrary topology. The limit surface is reconstructed using a subdivision technique. An interpolating subdivision scheme based on the modified Butterfly scheme has been adopted. This scheme yields differentiable limit surface. The actual discretization is based on the advancing front technique constrained directly to the limit surface. Various aspects concerning the performance of the algorithm have been addressed. Although the employed interpolating scheme exhibits several advantages, including locality and simplicity, numerical experiments revealed relatively large computational demands of this technique.