Rita,
Paper towel works fine too. My other diffuser is a sto-fen plastic diffuser with an extra layer of diffusing plastic inside and two layers of paper towel on the outside. Here is a shot taken with that diffuser (using a 36mm extension tube, which you can see in the photo of my other diffuser, to get closer):
John--I'm not sure what your point is about magnification. One can't tell the magnification or distance to the subject without knowing how much the image was cropped, but if one doesn't crop, this is in the vicinity of 1:1. A Canon crop sensor is roughly 22mm across, and a honeybee is perhaps 12 mm or so long. So a bee taking up half the frame is roughly 1:1. That is much closer than your shot of a butterfly and close enough to have very thin depth of field.
Dan