Lay your conditioned clay sheet flat on a ceramic tile. Place the image face down on the clay.
Burnish (rub) the image down on the clay to get rid of any air bubbles between the image and the clay. Spray a few squirts of water onto the back of the image.
Lightly run a finger across wet image to remove the paper backing. You may want to re-wet the paper to get it to roll off. Keep your pressure light so the image isn't removed.
For the bezel pendant, spray the bezel with Armor All. This is a release agent, preventing the clay from sticking to the bezel. Line the bezel up with the image and place it face down, pressing the back to create a impression in the clay.
Carefully lift the bezel, and cut along the square impression using a craft knife or clay blade.
Bake the square as-is (275° for 20 min), remove from oven, let cool for 5 min, then glue it into the bezel using E-6000 or you favorite strong hold craft glue.
Ink around the edge of the pendant with chalk ink if desired.
Touch up any areas the image transfer didn't take using a permanent marker before sealing with Mod Podge.
Cover the top of the pendant with Mod Podge DImensional Magic. Let dry 24 hours before placing on a chain or necklace and wearing.
Notes
After baking your clay, and before glue into the pendant, sand the edge of your piece with very fine grit, wet sandpaper if necessary.