Combine all ingredients in a medium sauce pan. It kind of looks like milk. Stir frequently to constantly for about 10 minutes (I was able to wash our electric griddle at the same time).
After about 10 minutes, it should start to thicken up. First it looked like the sugar was balling up and I was worried that I had messed up somewhere. But keep going! Pretty soon it all holds together like glue (without the stick).
Now choose your colors and mix them up. I only used two drops per color when mixing these (except for red, I let my two year old add those drops and who knows how many drops she added!). This was fun for the kids to see what happens when you mix colors and to watch how a little bit can go a long ways! The brownish/grayish color is all of the colors mixed together.
This is how it looks on construction paper. It didn't apply like I thought it would, but it does feel really neat! I think the colors look a little water-colory as far as paints go. It also adds some neat texture to whatever you decide to paint, since the more intense areas of color are where it's applied more like a glue.
My kids loved this project! It was simple and (again) clean up was a snap! After I wash their painting shirts, I'll let you know about "stainability" of this paint.