what kind of paint do i use on a terracotta pot. I also want to
shellack it. we want to present to our 2nd grade teacher. the children
will paint green on the back of their forearms and press it on the pot
- depicting stems, and their painted handprints will be the blooms.
then, around the top edge we want to put a nice quote about how she
helped the children bloom.

Hello legggs, thank you for your question, and what a great idea!

The short answer is you will need Acrylic Paint, for further
information see below.  Acrylic Paints are non toxic and are water
based but make sure you read the packaging for guidance information.

"Paint a flower pot!"
http://allsands.com/Home/Carfts/flowerpotpain_bha_gn.htm

"Vipond's Acrylic Paint can be used for all forms of painting. Use to
decorate craft items made from terracotta,"
http://www.camartech.com.au/ress/shop.php3?aisle=painting-viponds

"1. Paint a plant pot with acrylic paint, applying two coats if
required. Allow to dry"
http://www.hobbycraft.co.uk/IDEAS/IDEA_182.htm

Thank you for your question, and if you need any clarification of my
answer, please do not hesitate to ask before rating my answer.

Very best regards

THX1138
Search strategy included:
terracotta "Acrylic paint"
://www.google.com/search?hl=en&lr=&safe=off&as_qdr=all&q=terracotta+%22Acrylic+paint+%22