This is Ursula Martinez. She does a "speciality" magic act. You have to see it. Salman Rushdie had her perform this at his stage night, and John Mortimer watched the act on his 81st Birthday. I am a magician, by the way, and I know how it is done. If you know how it is done, please do not tell.
WARNING! This is incredibly rude - the hanky disappears and is discovered somewhere very naughty. You have been warned.
Ursula Martinez - Best Magic Show Yet
Addendum: What makes this funny to magicians is the method Ms Martinez uses. It is instantly recognizable to those who know, and it is amusing to see how many times she uses it. I dare say people are too busy looking in the wrong area.