I could not get on with waxed paper. Instead I used Bondaweb (thats what it is called here in England). However, one you have ironed fabric onto the Bondaweb you can then put it through the printer. Do trim up the edges first so that it has nice straight edges. After you have printed the fabric, peel of the backing. If desired you coul then iron the printed piece onto another piece of fabric. I found this method good for putting words onto a quilt BUT MAKE SURE THAT YOU HAVE PRINTED IT IN REVERSE. For this you need to find "T Shirt" print on the printer options. I then cut out each character and ironed in place then stiched round it. Hope this helps.
Jane