Find your font and print it out. You may need to print a few versions to get the right size and placement for your bag. Place the paper under the freezer paper and trace. Trace with the shiny side of the paper down.
Gently cut out the words with an X-Acto knife on top of a mat. Place the shiny side down and iron onto your fabric. No Steam. Don't pull the iron over the paper, lift and press. You want to make sure all the edges are firmly down.
Place cardboard under your fabric. Dab ink over the cut out areas. Make sure to dab very gently near the edges. Do not pull/push the sponges along the fabric - you do not want to lift the edges of the freezer paper. This will make the ink run!
Continue to dab on surface area until it is all covered.
While the ink is still slightly wet, pull the freezer paper off the fabric. Use the tip of the X-Acto knife to pull the little centers off the letter Os, As, Bs, etc.
Using a hole punch, I added the little dots around the outside. I think it makes the design look more finished.