In the end, we were able to come up with a robust system that is able to not only folder towels of various thicknesses, sizes and colors, but it was also capable of folding clothing pieces such as a Patagonia jacket and shorts. This program achieved even better results than we expected as it was able to pick up corners to use even when some of the dots that were supposed to outline corners were covered.
Initially, lighting was a huge concern for us because in some images, the placements of the dots were not visible due to harsh lighting, but in the end, we were able to perform folding without the towel covering the ceiling light.
Here's a video of Baxter folding a towel! First, Baxter goes to a position where he can see the entire towel and then detects the corners it needs to fold. Baxter then plans a path for folding the towel and makes it into a triangle!
Includes overview of project, how it works, and demonstration