I found this tip on scaledreams.com.
I have found a great way to make headliners, hood insulation, or blower blankets. First, obtain a plain, white, non-quilted paper towel (not too thick!). Lay this on or over the part you want covered, then liberally wet it with a mix of water (30%) and white glue (70%). Let this dry for a full day, gently remove from the part, trim to size, paint with a flat paint, and then reattach to the model!!
Good luck!