There are lots of ways to apply starch. Here's the method I use to give me nice, crisp, evenly-starched fabric:
1. Wash and dry fabric (to remove excess dye and to shrink)
2. Soak fabric in 1:1 mix of liquid starch and water (I do this in a dishpan.)
3. Air-dry fabric the way you would a wool sweater
4. Press fabric.