For Matt's Grandpa ("Papa"), I wanted to make monogrammed handkerchiefs. I had embroidered some similar hankies for Matt last year and I wasn't very happy with how they turned out. The fabric is so fine that I find it difficult to embroider on, and when they come out of the laundry the letters are even more wrinkly than the rest of the handkerchief (which is quite wrinkly).
So I decided to try using fusible interfacing to attach fabric letters. I printed out some letters I liked, transferred them onto the interfacing, and cut them out very very carefully. A sharp x-acto was very handy.
I'm not entirely confident that these will hold up over many washings, but I will be interested to see. I am happy with the way they look, in any event.
Hope your New Year is starting out very fine. Mine has been lovely. :)