These are the supplies you need:
1. A roll of freezer paper (Freezer paper is similar to wax paper, except that it is "shiny" on only one side. This is very important. Wax paper will NOT do the job! It will ruin your iron!)
2. Cutting board
3. Craft knife
4. Template (mine has my girls' names)
6. Whatever you are decorating (mine here is a bag, you can use clothes, aprons, bibs, socks, anything you can iron)
8. Scotch tape
Here are the steps:
1. Trim around your template, and tape it to the freezer paper on the dull side. The shiny side should be face down.
2. Cut around your template with a razor knife. Be sure to save any "islands".
3. When you've cut everything out, remove the template and tape from paper. It may rip the top layer off of the freezer paper just a bit, but that's ok.
4. Iron the freezer paper into place. I use whatever heat is appropriate for the fabric I'm using. I iron down the big piece, then go back and add the small pieces to iron down more precisely.
5. Paint in the areas as you wish. (on thinner fabrics, it is helpful to put something inside the shirt, bag, etc to keep paint from bleeding through.
6. Let the paint dry, then peel off freezer paper.
I decorated around the bag some more, but this is enough to show you what you can do.
Here's one more picture that I forgot about yesterday. You can let your kids paint on this stuff and use it for wrapping paper!