All I did was take a plain white Tshirt and then it was as easy as 1,2,3...
1) Pick a pattern on which to base your applique and print it out or trace it.
2) Take your prewashed fabric and some HeatNBond and apply using pattern as directed on HeatNBond package.
3) Go around your applique using a broad zigzag stitch .
TaDa!! Super cute and easy applique in like 5 minutes. Here is a close up of my "Big Apple", but don't look to close! I was using a new stitch on my machine and it took a minute to get the hang of :/