Use good quality crayons (Crayola works well) for the best results. Making the fill color darker around the edges is a good technique for adding dimension. As you work, don't press too hard. It's better to add layers of color than to have too much color that you can't remove. Take care to color evenly and without causing color streaks. When you're finished, place a piece of scrap fabric over the coloring and iron the paper on a high setting. This will heat set the coloring and remove excess wax.
There are lots of ways to tint your fabric for embroidery, with the most common being crayon tinting. In this post, you'll learn a few methods to try. With all of these versions of tinting, it's best to add the color before you start stitching. While it's possible to add the tinting after your embroidery is finished, it's much harder to color all the way up to the lines and without getting markings on your thread.