Girl with Red Balloon Original Mixed Media Illustration---- Love how creative this is. makes you wonder what else you can do with paper and fabric.
DIY Bear Kiddo Tee: Cool T-shirt Crafts for Kids and Teens. This could also be adapted to create a tee using other artwork by your kids.
Double strand necklace applique onesie or tee---idea.
Ballerina Owl Applique T Shirt Set for Children by Bubblebabys