16. Again as in Step 4, hide the target layer (logo) and select the base layer (t-shirt).
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17. Go back to the 'Channels Palette', and Select the 'Blue copy' channel.
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18. Next go to 'Select/All' (Ctrl +A), then 'Edit/Copy' (Ctrl + C) to copy all the contents of the 'Blue copy' channel as a selection.
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19. Then, go back to the 'Layers Pallet' and reselect the target (logo) layer.
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20. Next create a new empty layer 'Shift + Ctrl + N' and in the 'New Layer' dialogue box that follows, tick the 'Group with Previous Layer' option.
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21. This is what the 'Layers Palette' should look like now with the new empty grouped layer, stacked above and indented with the target layer (logo).
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22. Now, 'Edit/Paste' the 'Blue copy' channel (from step 18) into this layer. Alternately, Ctrl + V keyboard shortcut works also.
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23. Here's how it looks, so far.
As you can see the contrast (what I was highlighting in Step 6) blends nicely with the actual folds into the t-shirt.
Now we need to bring back the color of the target layer (logo) without losing this nice blend.
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24. To bring back the color, have the target layer (grouped layer) selected, and from the 'Layer's Blending Mode List' choose one that best does this.
I used 'Hard Light' to give me the final result as shown below. But in fact, any one of the 'Soft/Hard/Vivid/Linear/Pin Light' modes gives interesting results.
If desired reduced the Opacity of this layer just enough to eliminate some of the harshness in the folds.
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25. The final image.
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Here are some other samples using this technique.
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