Floresita of Things I’ve Made has a tutorial on how to use a transfer pencil. The transfer pencil is awesome and can help you transform any image into an easy to embroider image. You can get one for less than 5 bucks at any craft or sewing store. I’ve used this many times and it’s perfect when you want to photocopy images in order to enlarge your designs. Here’s some tips I’ve discovered over the years. Make sure you press hard when using the pencil on the paper while tracing. Set the iron to low/medium heat. Press down and pick up the iron to prevent the paper from burning. Hold the paper down with one hand and use the other one to preview under the paper to see if the image is set. This will hold your place to make sure you can iron over to get your image looking good! Link.
HOW TO – Use a Transfer Pencil