Jessica and I made the cutest gifts for her to give to family this year. (So if that's you, no peeking!) I've been told this craft is on the Family Fun website but I've never looked it up.
Step 1 (not shown): use Elmer's blue gel glue to draw a simple design on a rectangle of muslin. Allow glue to dry. (Elmer's blue gel glue: $1.99; muslin: $1.99/yard)
Step 2 (not shown): Get glued muslin thoroughly damp. Lay out on a flat surface. Using a large foam brush, paint the entire surface of the fabric (right over the glue, too) with watered down acrylic paint (the small bottles from the tole painting aisle work fine). Use just 2 or 3 colors. Dark colors over the glue areas work best. Allow to dry flat.

Step 3: Soak dried, painted fabric in hot water until glue begins to dissolve. Use fingers or a spoon to scrape off excess glue. Rinse and wring out excess water.

Step 4: Hang to dry. This picture shows the 30+ small projects that I helped her class do to make gifts for their own parents.

Close up of the results after removing the glue.

Step 5: Use hem tape to create hemmed edges and to make a loop at the top to run a dowel through it for hanging. Add ribbon and ball ends on dowel to finish. This shows the finished project. I *think* you can click on it to see it closer --it looks just like batik when it's done.

This is another version we did. The snowflakes were much easier and fool proof since they are simple geometric designs.