The first step is deciding on the image you want to put on the black canvas. If you're using your own design, just draw on top of the transfer paper with a black marker. If you'd like to use my "Reach for Stars" design, use a window or a BrightPad to trace it onto the transfer paper with a marker.
Using a pair of sharp scissors, cut out all the design elements, making sure to cut inside of the black line. Position the design in place on black canvas. Working one at a time, remove the paper backing from each piece. I will warn you that removing the back can be kind of tricky. I suggest pulling on one corner of the transfer paper until the paper tears and then pulling up on that.
Place a protective sheet or thin fabric over cut-out image and iron according to the Transfer Paper instructions. I set my EasyPress Mini to the medium setting and pressed each cut-out for only a few seconds.