I couldn't believe it! I tried every liquid and glue in my home mixed with every type of paper in my studio, and nothing was working. I was experimenting with transfers. Then one amazing combination worked!
An ink jet print on glossy photo paper + cotton cloth + Mod Podge (gloss)
First I printed a small picture in dark colors on my HP ink jet printer onto Burlington glossy photo paper. (I also tried Kodak glossy photo paper and it worked too.) Then I spread a thin layer of Mod Podge on a piece of cotton cloth using the side of a plastic card (my old library card.) Be sure to make the Mod Podge area larger than the picture you plan to transfer. Lay the picture glossy side down onto the Mod Podge. Gently press it into the Mod Podge. No need to rub hard or burnish.
Here's the important part. Do not walk away or let it dry. Stay right there and press the picture gently into the Mod Podge again. You will see immediately that a dark edge will appear around the picture. (see my photo below.) This tells you the transfer is beginning.
In about 30 - 45 seconds, lift the corner of the picture to see if the transfer is starting. The film of color on the photo paper will loosen and come off onto the cloth in one single piece of film-like transfer, so you want to be careful to loosen all four corners. Then gently lift off the photo paper and the transfer is complete. On one transfer I actually slide the paper off to the side without disturbing the transfer.
You can see the reverse of the dancer on the photo paper to the left of the transfer above. The transfer will appear to sit on top of the fabric, rather than be down in the fabric fibers. After you let your transfer dry, it will be different from any other type of transfer. It may have tiny wrinkles or imperfectons, or appear glossy. If you want a more matte look, carefully brush on a layer of matte gel.
These four little photos are Mod Podge transfers too. You can see the wrinkles in some of them. The clown is one of the first Mod Podge transfers I made. Don't be afraid to experiment!