Here is a simplified example where I grabbed an image from my camera roll, painted over it with blue, outlined a few simple shapes with a pen tool, and erased within the shapes to reveal the original image.
The great thing about it is that you can change the opacity before you start drawing (if you’re not into surprises) and be as precise as you’d like with your drawing (for placement purposes).
I’m still using my finger to draw and paint, mainly because I like the rough, organic feel it gives but also because I’m really getting into this new, spontaneous way I’ve found to create art every day – but using a stylus would give you even greater control.
Btw…it’s the iColorama app I’m using — I have it for both the iPad and the iPhone – they’re a little different and (I’m ashamed to admit) I can’t seem to figure out how to use the one on the phone – but I prefer working on the larger screen anyway.