Use the pre-set settings, and cut out the design. You can adjust the size if you want.

Paint the elf with your favorite colors. I am usign acrylic markers (fine-tip ones); but you can use paint & paintbrush, or even watercolors. Use usual red-white-pink colors, or anything else :)

Use varnish (or any clear coating) on both sides to secure the paint.

Wait, until it's dried completely.

Add a small dot of glue to the back, and add your magnet.

Wait, until it's dried, and ready to use on you fridge :)