Here's how the tag turned out, followed by a step-by-step of the process:
To make an embossing folder act like a stamp, I rubbed black ink over the section I wanted highlighted. Warning! The ink may or may not wash off your folder afterward, so if you're one of those people who likes to keep your embossing folders in mint condition, this might not be the technique for you!
I'm sure some inks work better than others, but I tried Ranger Jet Black Archival ink and it worked fine. Whatever ink you choose, have your paper and machine ready because you have to move fast before the ink dries! Once you've rubbed your ink onto your folder, close it up with your paper in between and run it through your machine like you would with any embossing folder.
Here's what it looked like after I took it out of the machine and cut it into a tag shape:
The butterfly outlines are just dark enough to allow me to color them in (just like a stamp), which I did with watercolors:
Next I added some Distress Ink to the background and edges.
I added some white polka dots by using acrylic paint on a stamp:
Last but not least, I added some embellishments, including the word, "fly."
I have to say that I thoroughly enjoyed this butterfly embossing folder and I think it enjoyed masquerading as a stamp for the afternoon. Some people might have fancier ways of converting their embossing folders to stamps, but this was quick and easy and worked great for me.
The paper is also from We R Memory Keepers/Lifestyle Crafts (Story Time Collection), the flower is from Prima, the "fly" alphabet stamps are from Recollections, the polka dot stamp is from Stampabilities, and the piece of ruler fabric is from Tim Holtz.