Yes - it works great on fondant and the sides of wedding tiers. For those I like to use heavier copy paper because it leaves a better imprint. If it's a pattern you'll use over and over you can use quilting or stencil templates, available at craft stores.
Years ago I wrote an article for Mailbox News about the glaze and transferring patterns. I'll paste it below so anyone who reads this can see it. I tried to add it as an attachment but the extension isn't allowed. There have been a few notes added after the article was written and they are included at the bottom.
Kathyf aka Kathy's Kakes
Transferring A Pattern To A Cake
Kathy Finholt
There are many sources for artwork to make patterns from. You can purchase clip art books, computer programs or find non-copy righted clip-art on the internet if you have a computer. You can also check with your local newspaper and ask if they have outdated advertising clipart books that they no longer need. Line drawings are the easiest to make patterns from. After deciding on the artwork, enlarge or reduce it to the size you need, using a computer or copy machine. Ink jet printer paper works best, but almost any copy or writing paper will work.
Place your picture on a flat piece of Styrofoam the type coolers are made of. Using a sharp corsage or t-pin, poke holes on the lines of the drawing 1/8 inch to ¼-inch apart. Close holes work better on a picture with a lot of detail, but be careful not to tear the paper. Small pieces of the Styrofoam will sometimes stick to the raised dots that are formed on the back of the paper, so turn the paper over and use a pastry brush to brush it off. The raised dots will create the dot-to-dot pattern on top of the cake, so be careful not to smash them. The patterns can be saved and reused several times if you have a place to keep them clean and dry. A file cabinet with hanging files works well.
Frost your cake and smooth with wax paper as soon as the icing has crusted slightly. Place the picture on the cake (right side up), and gently run your hand over it to imprint the design. Make sure you go over the whole picture before removing the pattern. Its almost impossible to realign a picture if you miss part of the design. Dont wait too long to imprint the pattern or your icing will crust too much for the pattern to be transferred properly.
If you use an icing that does not crust you may still be able to imprint with this type of pattern if you refrigerate the iced cake. It will depend on the icing recipe used.
After removing the pattern, use a tip 1,2,3 or 4 to outline the design. The larger tips are easier to draw with, but with the smaller ones you can make a more detailed design. As soon as the outline is dry enough so you can touch it without it sticking, lightly flatten it with your finger. This prevents the glaze from leaking under the outline when you fill it in.
You can fill it in right away, but it is easier to work with if you wait 2 hours or longer. It will also prevent colors from bleeding together if the outline is dry before filling it in. I use a glaze made from 2 lbs. powdered sugar, 1 T clear vanilla, ½ t. almond flavoring, ¼ t salt and ¾ cup water. The amount of water can vary. Mix it to a consistency that works best for you. A good guideline is when a small amount of the glaze is dropped back into the bowl; it takes 3-6 seconds for it to disappear. The thinner glaze is easier to pipe into the design, but a thicker glaze is needed if you are using it on a cupcake with a surface thats not quite level. If your glaze is thin you need to be careful filling in the design or it will overflow the outlines. It crusts quickly, so complete one area at a time, working from the outside to the center of each section.
The glaze can be put in a disposable decorating bag with a small hole cut in the end or piped from a parchment cone. I use disposable bags with a hole the size of a #1 tip. Close the top of the bag tightly with a rubber band. The glaze can be kept refrigerated for several weeks or frozen for several months. Parchment is more economical if you only use this method occasionally. If the glaze is saved it will separate in the bags. Pinch the open end of the bag and knead the bag to remix it. A small piece of tape can be placed over the end when storing the bags to prevent the glaze from leaking.
Petal or luster dusts can be mixed with lemon juice or lemon extract and painted onto the glazed areas after they are dry. It takes 2-8 hours for it to dry enough to be painted on. Smaller areas dry quickly. Larger areas take longer. If you attempt to paint on them before they are dry the glaze will dent.
Piping gel, or regular icing smoothed with a finger dipped in cornstarch, can also be used to fill in the designs.
Patterns for printing on cakes can also be made this way. Youre only limited by your imagination!
Added notes
~The outline is done with regular icing not with the glaze. An icing that dries enough within 10 minutes to slightly flatten works the best.
~This article was originally written for Mailbox News before I started using a Kopykake projector. They had it on file for a few years before it was printed so by the time it came out Id already found some new tricks many thanks to other decorators trying the glaze and coming up with new ideas.
~We have found out that the glaze does not work well if you transfer the picture using piping gel. The gel does not allow the outline and glaze to dry and the colors bleed together.
~The glaze does work well on soft non-crusting icings if you have a projector or other method to transfer the pattern.
~The glaze works great for cookies dries firm enough to stack carefully but soft enough to bite easily.
~The glaze surface will crack if you dont use a cake board with enough support.
~After writing this article I found a computer clip art program that has made me retire the newspaper clip art books and most of my color books. Its called Art Explosion and is available from Nova Development,
http://www.novadevelopment.com/Products/us/arw/default.aspx,
or through most of the chain office stores like Office Max or Staples. I think Amazon.com also has the program.
I currently use the Art Explosion 600,000 but they have added an 800,000 image version.
Another good source is to use the google or yahoo image search. Youd be amazed at what you can find there!
LOL I have always done all of my pictures this way--it works great for me! 
I might have to try the pin prick method sometime, though, it sounds interesting!
