Years ago I bought a heated, double -bladed craft knife thingy thinking I could make my own stencils. PAIN. IN. THE. NECK.!!!!
I have been using the Golden Threads paper since then. However, I accidentally discovered about a month ago that Staples sells tracing paper on a roll and I can't tell any difference between that and the Golden Threads paper, except that the roll from Staples is wider and costs a little less for the amount you get.
I have been known to cut out shapes from stencil plastic and then trace around them directly onto the quilt top, too.
I have never had any trouble with the pounce pad washing out. And one more thing I have done is refill my Chalk- O- Liner with corn starch. It washes out just fine, too.