I wondered the same thing for a while, but came to the conclusion it wouldn't be possible (note that I haven't tried it, so feel free to jump in here if I'm wrong anyone).Rodney said:
My thinking was that plastisol is PVC based, so you can essentially congeal the ink onto the paper, then transfer it/cure it onto the shirt. Waterbased inks air dry, so they'd print and dry out on the paper. If you heated the paper for a transfer, they'd just dry out/cure. I couldn't see how you could get them to transfer from paper.