The paper color and texture is a critical part of the appeal of the transfer print. These two characteristics extend throughout the image itself and into the area that surrounds the picture. For this to occur in a digital facsimile it is necessary to provide some space around the image using Photoshop’s Canvas Size feature (Image > Canvas Size). Unlike Image Size, this option allows the user to increase the size of the canvas that all image layers (including the background layer) are sitting upon without changing the image itself. In the example the canvas width was increased to 120% and the height to 140%.

Choose Image > Canvas Size and then extend the canvas using the Width and Height boxes.
To add the texture to both image and surround I flattened (Layer > Flatten Image) the two image layers and the white background into a single layer. Next, I photographed a section of watercolor paper to use as a customized texture with the Texturizer filter (Filter > Texture > Texturizer). You can download and use this very file from the link mentioned above or pick one of the options from the Texture pop-up list.

Choose a texture from the texture menu.
With the texture complete, I played with the overall color of the image using the Levels feature (Image > Adjustments > Levels). I altered the blue and red channels independently and concentrated on the lighter tones of the image so that rather than the paper being stark white it took on a creamy appearance.

Adjust the color of the image in the Levels dialog box.
The last part of the process involves combining the final image with a scan of a Polaroid film edge. You can make your own edge image by scanning a Polaroid print and then removing the picture, or you can download the image I used from the book’s website mentioned above. Open the edge file as a separate document. Click onto the edge picture and drag it onto your picture. The edge will automatically become a new layer on top of the existing image layer. With the edge layer selected, change the layer’s blend mode to Multiply. Notice that the white areas of the layer are now transparent allowing the picture beneath to show through. Finally, use the Scale command to adjust the size of the edge to fit the image.

Change the edge layer blend mode to Multiply to allow the picture to show through.