A towel has to be the hardest to embroider and the hardest to remove embroidery. Next to a fabric like silk, I would say that a towel, cheap or expensive, is a real disaster.
I have looked over the answers here. As usual, Ann has given you a great avenue to repair your fabric, but the most fool proof solution is to buy another towel.
I will be talking about stitch removal in one of my up coming blogs. Revomal is never an easy issue. Another factor is the amount of removal necessary to complete your task. If you have to do removal, I have found that natural light is a great asset. And, Iself1 added a magnifier, another excellent idea.
I do hope to see more ideas here at AnnTheGran, ME enthusiasts are really resourceful.
I hope you'll visit
The Avid Embroiderer my blog for some tips and tricks from someone who enjoys sharing her discoveries.