If you wash out the transfer stuff, then yes, you can use InkTense to color your fabric after it's been quilted. It works best if you work with PFD fabric. I'll try to post some pics when I get home from work today.
Using InkTense with water produces a translucent color. Also, too much water will make the ink run so instead of getting the fabric wet & then coloring, I use regular paintbrushes (for acrylic paints -- set from HL with flat, filbert, round, detail) and either (1) dip the brush in water, then run it along the block & paint, or (2) gently, carefully color in my design, then I use a small spritz bottle with water in it to spray all over so the ink can penetrate the fabric. For a more opaque color, use a fabric medium. I did just see that on the Derwent website it says you can heat set InkTense. I'd never heard of that before. I'll have to give it a try and see what happens (I'd definitely use a sheet of parchment paper to protect my iron). I'll try to snap a quick pic of that experiment, too -- for comparison.