They say that water slide decal paper is the thing to use. I have not tried it yet, but plan on doing so. I have heard good things about it. You can buy it in clear.

Here is a link that might be useful: Water Slide Decal Paper

Thanks so much for that link, shysue . . . looks like exactly what I need!

I've used it! It was not great. And every printer will be different as to how it sets down the ink. My epson printer did a much better job than my HP. The other thing I found was the ink is easily smeared.
I used it a couple of years ago so maybe they have improved it tho.

check here too

Here is a link that might be useful: home made rub ons

I've used the waterslip decals and had very good luck with them! After printing them I spray with a clear sealer and then let dry. Then I put in water as per the directions and apply them. After they are thoroughly dried I spray again with the clear sealer.

I have had good luck with the waterslip decals, but like MaryAnn said, you have to seal it. I use 3 - 4 very light coats of clear Krylon spray paint.

I let the printed page dry, then spray a coat and let it dry, repeat.

I am not sure how well they would stand up to something that gets heavy use, like a mug or coaster, but for a decorative item, they work great.

I cram as much as possible onto one page then cut them out. I always print a test copy onto plain paper first, so I don't waste the decal paper. It isn't cheap, and it is kind of hard to get - I can only order it. I have never found it in stores.

Make sure you get the right kind - they have clear and white (I use clear) Also make sure you get the right type for your printer - Laser or InkJet (I use InkJet)

You can buy the "sealer" anywhere. Just any clear spray paint will work.

Double check the size of the paper. I have found that the paper from Bel Decal is just a smidge larger than 8.5 x 11. I had to trim it just a little for it to feed through my printer right.

This is my waterslip decal project - I bored out a 4 wick candle, added a votive cup and put on the words using waterslip decal.

Iowagirl, I love your candle. The words on it really add to it and it looks great. I need to quit procrastinating and order some decal paper.

oooooooh, I love your candle, iowagirl! Thanks everyone . . . I will definitely get some of the paper. What I have in mind is just decorative, so I think it'll work great :)

This is way late, but I user a Silhouette Cameo to make my stencils -I use them to etch with my sand blaster... ...in fact I make plates with words too with it... I'll find a picture... I am no longer doing the redneck wine glasses regularly but still do special orders for weddings etc.

WOW!!! I haven't been on for quite awhile. Didn't know all of these new products even existed.
Keep posting these ideas. I love them!!!

clear or sheer labels might work for some uses, too. You can even put a second, unprinted label on top of the printed one for protection.