I believe that what you are talking about is called Texture Magic. You cut it the same size of the fabric, draw a grid onto it, and sew your fabric to it, following the grid. Then you steam it, and it shrinks and because the fabric is attached to it, it wrinkles or puffs. I think is very cool. You can see it at
http://www.superiorthreads.com/shop/...agic/products/
Maria