This Demonstration takes the images of a letter in two different fonts and blends them. You can choose the fonts and the letter. You can also see the blended letter with an overlay that shows the outline of the original letter.
You can also vary the resolution of the final blended image to increase blending speed. There are two image overlays available; one for the letter in the first font, and the other for the letter in the second font. The image overlays are generated using the corners of the letters. Their purpose is to make it clear how the letters were aligned and blended.