You draw on fabric with Sharpies (I suppose you can also use other types of permanent markers. I happen to have a lot of Sharpies.) Draw a design that is at least an inch in diameter. More ink bleeds more. Drip rubbing alcohol into the center of the design and watch the ink bleed out to beautiful effect. More highly concentrated alcohol works better. Look for 70% or more concentrate at the drug store. This is probably what you already have in the cabinet.
I probably have a medicine dropper somewhere, but we just used a straw as a dropper for the rubbing alcohol. Let them dry completely. After a few minutes, we laid ours out on an old towel to dry. To set the color, they must be heat set, but be careful with the iron or the clothes dryer because alcohol is extremely flammable.
We were totally mesmerized by the process and could not stop. I had some white muslin that I cut up to use, but we used that up quick, so I also cut up an old sheet.
We had to quit when the alcohol smell got to us. My daughter already cut up some of our creations to make a card for her teacher. I think we might put some beads onto some of these and stitch them into pretty ornaments. We haven't decided. They would look great in a quilt too!
** Edit: How fun! I was contacted today by Sharpie and Steve Spangler about this project!