Mod Podge.

So before Jack came along, I was determined to make some fancy letters for above his crib spelling out his name. I wasn't able to find any that matched the whole Hungry Caterpillar theme and so I figured that I needed to make them. I did some research on how to Mod Podge my own letters. For some reason I was a little intimidated about using this stuff and also had limited fabric usage so I knew I couldn't screw up!
Mod Podge is probably the easiest stuff I have ever used though! It is literally like glue. I am sorry to say that I didn't take pictures during this project but I will explain the procedure because it is that easy.
Here is Mod Podge just so you know what you are looking for if you decide to try it out ;)

Here are the letters covered (Project finished but will help you visualize what I am talking about)

I started with big wooden letters and traced the letters onto paper. I then cut around the traced letter lines (Not on the traced line though). I pinned the letter to the fabric and then cut on the line with the paper and fabric. (Cutting on the traced line now helps to cut a cleaner, more accurate line on the fabric rather than trying to cut the same exact letter twice).
Once the fabric letter is cut out, I used a paint brush to smooth on a layer of Mod Podge onto the front of my letter--Just enough to make a layer of "glue". Then I laid the fabric onto the letter as close to the wooden letter as possible. My fabric stretched slightly when smoothing but it was still pretty close to the template that it didn't look bad. Other fabrics may stretch worse though. To finish the letters, I just smoothed a final layer of Mod Podge over them to "seal" them!

Ta-Dah!

Mitch also made a really cute canvas art print for Jack's room of the Hungry Caterpillar. He individually cut up a bunch of paint sample blocks to form the caterpillar but we were having a hard time getting it to seal and lay flat to the canvas. After making these letters, I thought let's give Mod Podge a try. Its really that addictive to use and the coolest stuff ever. I feel like the possibilities are endless.
Here is the art piece that he made-- Notice how well the whole thick art piece sealed to the canvas rather than curling up which it had done with glue and sticky dots.