I've done a bunch of towels now using Transfer-eze (I got mine from
Wooly Thread). I have a few done I can show now.
Mostly I used printed out coloring pages from the Internet, but for the Muppet's Swedish Chef, I couldn't find one. I printed a color photo in B&W and then used that. I filled in the detail lines that had faded out using a plain pencil on the Transfer-eze. I used the original printout to guide me when I just couldn't tell what was what (his spoon turned into a blob that looked like a fold in his shirt until I redrew the outline). I was quite happy when, as I'd hoped, the pencil lines vanished with the Transfer-eze.

Using the photo made the picture I was working with very different from the final embroidery. (The pink at the bottom is not bleeding, it's a reflection of the pink bath towel I have the embroidery sitting on...it was still wet when I took this.)

This is a more traditional coloring page, below. I ignored the black spaces (except for eyeballs, those I filled in) and just outlined the design. Here it is before rinsing off the Transfer-eze.

The product dissolved pretty quickly. I used warm running water with a drop of dish detergent and I did rub with my fingers. I have no patience. I found it worked better if I trimmed the sheet around the design before putting it onto the fabric or if I pulled off the outside edges after stitching (not so easy, this stuff really stuck to the cotton towel fabric). Here it is after rinsing.

I ironed them dry and they came out very nice. I still have one I'm working on (Kermit). I really like that I don't have to worry about covering each design line completely. They just vanish!
Mary Corbet at
Needle 'n Thread did a detailed article on using Transfer-eze with many good tips.