I would try the regular vinyl setting first.
Vinyl stickers for coffee mugs.
Applying the vinyl to the mugs to mark the mugs where the vinyl decal is going to go use a dry erase marker and draw a line down the mugs in the rack.
The setting in between vinyl and iron on is vinyl.
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You have successfully sealed the vinyl on your mug.
Do not apply transfer tape to the printable vinyl.
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Simply peel back like a sticker.
Updated august 11 2020.
It cuts a little deeper than regular vinyl.
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Cut a piece of transfer tape just a bit larger than the biggest decal.
Make sure to do the front and the back since we are applying two decals per mug.
I apply the camera clip art first and work my way around that.
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Apply the vinyl to the mug and allow the vinyl to move where it wants to go naturally.
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I always use permanent adhesive vinyl on my mugs.
Then finish cutting your colored 651 vinyl on vinyl setting.
Don t force it into a position.
These snips allow your transfer tape to bend with the curve of the mug and allow you to apply it on that curve without any creases.
Make small snips around the edges of the transfer tape on your vinyl decal.
You can also clean it in the dishwasher if the sealant is labeled as dishwasher safe without worrying about the design coming off.
I have read mixed reviews of using heat transfer vinyl.
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Now you can use the customized mug to sip your hot coffee or chocolate.
Once you have everything cut and weeded you may apply to the mug.
The vinyl brand i use is avery which is also the vinyl used to wrap cars.