I was right.
My first applique. I am quite proud of it. It only took me an hour - not quite the 20 minutes it was supposed to take, but not too bad for a non-sewer. I gave it away as a gift at a party that Lilly went to on Saturday. What little girl wouldn't want this rainbow T? And the best part is that I was able to maintain my Scrooge like status and boycott the buying of any more toys - even for other people's children!
Now I have a million ideas: birthday shirts, Easter outfits, gifts, etc. I am on a roll!