You will know how to set custom icon for any application you want from this part. What we are going to do is very simple. We need iFile and iconMaker from cydia on your iPod touch. iFile is a pretty cool option in your iPod provides a lot of facilities. If you do not have it, I recommend just get it anyway. You can generate a custom icon using iconMaker.
Change App Icon Using iFile And iconMaker :
Step 1: Get an image. Go onto safari and search the image. Click on the image that you like most and save it.
Step 2: Open iconMaker and click on camera icon that is in the top right corner. Tab saved photos and press on the image that you downloaded for using as icon.
Step 3: Your selected image will appear on the iconMaker board. Click Generate icon. A copy of the original image will be created.
Step 4: You can give effect on your generated icon just switching on – Apply overlay and/or Apply shadow. Personally I like both effect on my icon. Select switch on for save file and open in iFile.
Step 5: Now you have to do generate icon again and open iFile. Click on image viewer. Make sure that your image is selected and press done. You will see edit option on right-top corner. Click edit. Then check your icon image. You can see the little arrow in the bottom right corner, click on that and then press Copy/Link and click done.
Step 6: And next click on home button. In application bar on the top of all bars where you will find the apps that you downloaded from iTunes. Click an app folder and find the icon images and delete those. Click on bottom right corner (arrow) and paste. Your new icon that you copy from iconMaker should now be there.
Finally respring your iPod touch and wait until the screen goes black. Now open your iPod and you will see you custom icon for your app.