I would have concerns with the inks reacting to the heat of the iron and color fastness when laundering. You might want to try drawing up a template and then using acrylic fabric paint and paint directly onto the fabric with a brush.
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The paper is designed for printing, but you could use pen. L
Back when dinosaurs roamed the Earth, you could buy special crayons that would heat transfer onto fabric anything that you could draw in reverse on regular typing paper (it was typing paper back then, as desktop inkjet printers were still the stuff of science fiction at the time). You could only effectively use it on white fabric, the color palette was limited, the transfer was fuzzy, uneven and pale, and the crayons tended to leave little dye-soaked crumbs everywhere. I couldn't get enough of them. I once bought eight packs of them just for the green ones, so I could turn a pair of white briefs and an undershirt into a Green Lantern costume to go with my power ring made out of green enameled transformer wire. The costume looked terrible. I loved it. To tie this rambling back into the actual topic, the transfer paper for dark fabrics would probably work beautifully with colored markers, and you wouldn't even have to draw in reverse. I've not used the transfer paper for light fabrics, but I'm guessing it would work too. Now go make some Green Lantern Underoos.
What do the instructions to the paper say?