It is a fabric glue called Stiffy. Elmers would probably work, I don't know for sure. I tried starching it, but that did not work at all. It has to be really stiff, or it won't hold it's shape. You can try a small piece of fabric, let it dry, and see what you get?
Link is for stiffy glue, so you can see what it looks like. Just make sure you print out the sheet of circles, and glue them on the back side of the fabric. It makes it easier to cut out for me... Once you have the circles cut, you need to score each line so it will fold straight. I used the back of a pairing knife. As the fabric glue dries it will curl the fabric, not to worry, as it still works good once you cut out the circles.
http://www.save-on-crafts.com/...