I created the sailboat on Landon's birthday shirt (I purchases the blank shirt on sale at Hobby Lobby for less than 2 dollars) with felt! I want to share this, because it requires much less stitching, manipulation, and trouble than appliqueing fabric. Felt holds its shape and it doesn't unravel, so it was perfect for this birthday shirt makeover. And I will definitely be doing it again with another design on another shirt on another day!
The steps are simple!
1) Draw your design directly onto the felt (backwards on the backside) and cut it out. I drew a sailboat, because it was the theme of his party, but do anything you want. If your child is old enough, they may enjoy helping create the design. ***Also, if you are more comfortable, you can print a design from the computer or draw your design on paper first, and then cut it out and trace it onto the back of the felt.
2) Pin the felt piece(s) onto the front of the shirt to keep them in place. (If you don't have straight pins, you can use safety pins or double stick tape to help keep the pieces in place while you begin stitching.)Using needle and thread (matching or contrasting) simply stitch around the outside edge of your design!
3) Add buttons or ribbon if desired and you're done.
And it is machine washable. I have washed Landon's shirt several times inside-out and it is still going strong.