HWPen - Handwriting Recognition Application for iPhone

HWPen - Handwriting Recognition Application for iPhone. This is the first Handwriting Recognition IME on iPhone. HWPen is a third-party application developed by Hanwang.com.cn in an effort to make Chinese text entry a bit easier (what with all those thousands of characters in the Chinese language). Latin alphabet is supported too. HWPen app works in English as well.

HWPen can take handwritten words and convert it into iPhone text. Simply trace your word with your finger in the text entry box, and HWPen will convert that squiggly mess into text. It's simple and it's free.

HWPen Handwriting Recognition Application for iPhone - Step by Step Installation:
0. You'll need a jailbroken iPhone to get HWPen (iPhone jailbreak tips in the sidebar)
1. Start up your Installer.app
2. Hit the "Sources" tab at the bottom of your screen
3. Tap the "Edit" button in the upper right
4. Then tap "Add" in the upper left
5. When prompted to do so, enter the "http:// iphonecake.com/src/all" in the text box.
6. You'll find HWPen listed under a new "iPhone Cake" category.
7. Install HWPen and restart your iPhone.
8. Done! Happy Handwriting in no time!

Note: this is a beta version, so backup your /System/Library/LaunchDaemons/com.apple.SpringBoard.plist before you go! just in case there's something wrong.

(source)