I followed the tutorial that Suzanne at Just Another Hang Up posted here. I printed right onto my muslin fabric using freezer paper rather than using the spray adhesive and paper.
I got the image from The Graphics Fairy. If you've never checked out this blog, you really should. She has tons of FREE graphics that you can download.
I think I might make Thanksgiving and Christmas pillows too, since there are so many cute holiday graphics to choose from.