If you get a good quality transfer paper for light shirts and pigmented inks, you generally won't have to worry about those problems (bleeding, cracking, or peeling).
Dark or opaque transfers, on the other hand, are always going to be a bit poorer in quality. We don't use them at all because of this, but some people specifically like the 'rubbery feel' you get with this type of transfer.
You should really get a heat press to press the transfers if you're doing more than just a few shirts for hobby/friends/family.
I've never heard of any cotton-based transfers like you're talking about; let us know if you find out more about them.
Dark or opaque transfers, on the other hand, are always going to be a bit poorer in quality. We don't use them at all because of this, but some people specifically like the 'rubbery feel' you get with this type of transfer.
You should really get a heat press to press the transfers if you're doing more than just a few shirts for hobby/friends/family.
I've never heard of any cotton-based transfers like you're talking about; let us know if you find out more about them.