White Charcoal Pencil by General's
This is my favorite white chalk pencil. It makes a line that you can see and it brushes off well. It sharpens to a nice point but please note that you don't really need a sharp point on your chalk pencils.
The chalk line that you draw around your templates is part of the seam allowance! It turns to the back of your applique.the part of the line that is important is its inside edge.
Note: if your pencil breaks every time you sharpen it you probably need a new sharpener.