This tutorial will teach you an easy way of tracing the images without tracing paper and creating a stencil of postage stamp.
I have thought and tried this method for the first time. It can have many variations in color, content and size.
Inside the postage stamp you can paint/print the content using any method of your choice. I'm creating a stencil for the inner content also.

Material Required:

1. An image file (jpg/gif/.. on your laptop/tablet) that you want to appear inside your postage stamp. Choose simpler images preferably outlines only.
2. Plain paper, pencil
3. Scissors
4. Xacto knife
5. Fabric colors - White, Green and Blue
6. A T-Shirt on which you want to print the postage stamp

Step 1: Select Image

Find an image from internet that you want to print inside your postage stamp. I selected the image of Michael Jackson.

On a paper draw 3 rectangles one inside another as shown in the second image.

Step 2: Create the Outer Edge of Postage Stamp

On the lines of the outermost rectangle draw semicircles facing inwards with a little space between each semicircle ( See first image). Using Xacto knife or scissors cut along the semicircles drawn and the middle rectangle. Don't cut the boxes at the corners.

Note - You can also draw semicircles only on two sides. In that case find the mid point of the rectangle and fold it into half. Now cut along the semicircles with scissors. This way two side will cut in a single go.

After cutting the semicircles the stencil will look like the third image.

Step 3: Trace the Image

On your laptop open the image that you want to print inside the stamp. Place the paper on your laptop screen and fix it using clips.
Trace the image on paper at the desired position. Cut the figure with Xacto knife

Step 4: Fill Color in Outer Area of Stamp

Place the stencil on T-Shirt. Fill the outer space with white color using a brush (you can also use a sponge).

Step 5: Fill Inner Rectangle

Remove stencil and fill the inner rectangle with green color. Let it dry.

Step 6: Fill Color in Figure

Then again place the stencil on T-shirt and fill the figure with blue color. Remove stencil and let it dry.
You can write some text as I have written "This Is It !!".