There is paper-baked iron on transfer paper and you can get it at Wal-Mart or the like. I can't remember what it's called. I use it a TON though (I have some here sitting beside me
)
I iron the fabric scrap on the paper, then cut out what I want, then peel the paper and iron it on the shirt (or whatever). Then I satin stitch around the edges to secure.
I'll try to find the name of it in a bit... baby is crying!
Heat n' Bond!!!
I usually get it by the yard at Joanns, but I know I've bought it at Wal-Mart before too.