I found this awesome tutorial on youtube from My Wonderful Walls! You can use this technique to paint letters on furniture, walls, or canvas.
HOW TO TRANSFER IMAGES:
You can create your own printed fabric using vintage images!
You’ll need an iron-on transfer paper, this paper is sold as 8.5″ X 11″ sheets.
Your final result should be a clear image with a somewhat stiff, glossy look on fabric
You can also transfer images to flat surfaces like wood, metal and glass.
1. Print your image in reverse using n ink jet printer on iron-on transfer paper(reverse or mirror image setting on your printer) on the sheet. Trim off the excess paper around your image.
2. Preheat your dry iron (no water or steam) to HIGH for five minutes. Place the transfer image face down on your fabric on an ironing board.
3.Begin ironing at one corner of the image, pressing firmly using the iron’s center for five seconds, then continue moving the iron and pressing until you have covered the entire image.
4.Let the transfer cool for three minutes.
5.Gently stretch the fabric along the edges of the transfer until the paper starts to detach. When it does, peel it back slowly from the fabric.
6.Place a piece of clean white paper over the image and iron it again briefly to fuse the image to the fabric.
7.If you plan to wear this fabric, turn the garment inside out wash it in warm water first, separate from other garments. Tumble dry on medium heat. This will fix the image and prevent color bleeding. if the image appears dull, iron it again and the color should return.