Have never tried to applique towels so I'm interested in the answer to your question too. Someone will have the info for sure!

I love Applique and am always doing it on towels and face washers and to add a little extra I use same color threads and fabric underneath this gives you a double sided applique looks better than just on one side I like to call it reverse Double applique and I experiment with all fabrics even fleece if im doing Bears and satin for roses I dont use stabalizer and I float the fabric underneath Hope this helps hugs Shazells

Thanks for asking this question. I am glad to have the information on this.

It is called 'dry cover-up' and a few places sell it. Here are some links that will help you. The first explains it's use and the others are sources to purchase it. I use it a lot so I know it works great. I hope it helps you.

Marcelle

http://www.emblibrary.com/EL/ELProjects/Simpleproduct_ELP.aspx?productid=PR1256

http://www.secretsof.com/content/890

http://www.discountembroiderysupply.com/index.php?main_page=advanced_search_result&search_in_description=1&keyword=Dry+Cover-Up

http://www.hoopitall.com/stabilizers/