I've working on the best technique and materials for making stitch markers with ShrinkyDink and tangles. I really need to get some alcohol-based pens as the microns smear too much although they do bake permanent. Since the ink wasn't permanent and smeared, I added the color on the back. After baking, I found that the bottom-or maybe it was the inside center-pushed out around the edges so I'll need to take that into consideration as I continue. Also, even though I used a normal hole punch size of 1/8", the hole was way too tiny after shrinking so I'll need to either use a bigger hole punch or use a drill to make the hole larger after shrinking.
Also, the instructions for ShrinkyDinks said to place the piece on a piece of brown paper bag, then after taking it out of the oven to press it with a pad or folded paper. When we did this, the brown paper bag got stuck onto the back of the piece and had to be softened with water and scraped off. I still haven't gotten all of it off though.
One thing that made it easier was that I purchased a Fiskars Round 'n Round X-Large Easy Squeeze Punch which punches out a 2" round circle which shrinks down to about the size of a nickle. It was about $18 at Michaels but I had a 40% off one item at original price coupon so the price was more in my price range.
Anyway, here's the finished test product that I placed on the scanner since my camera has gone awol. Pressing it with the pad also meant it lost any shine it may have had so maybe I'll have to add some protection to it to get it shiny again.