Much of the action takes place in the printer's cartridge. The red solution, dyed that way for the demonstration, consists of skin cells, which are harvested from the patient, analyzed and multiplied in the lab.

The green solution will form the skin's 3D scaffolding, "to organize the red material and keep it in place," explained Lian Leng, one of the lead developers of the printer.

The skin cells (red) and the gel-like scaffolding (green) are fed through an intricate web of channels, emerging from the cartridge as a woven mosaic -- the location of the cells directed by computer.

To put it simply: "The printer tells the cell where to go," said Dr. Marc Jeschke, director of one of Canada's largest burn units, and a leader on the skin printing project.

The cellular tapestry gathers around a rotating drum, and strips are then collected.

While other artificial skin methods can leave patients with skin that doesn't match their color, or lacks follicles or sweat glands, researchers on the project say their method will allow them to eventually add those complex layers of cells.

The skin strips are then put in a petri dish, cultured and placed in an incubator.

"You basically imprint your various cells into this three-dimensional matrix that comes out and it's basically ready to be put on the patient," said Dr. Marc Jeschke, one of the leaders of the skin printing project.

The printer is still in preclinical trials, but Dr. Marc Jeschke's team said they hope to move to human trials within two years, and if those go well, they hope to have the printer in hospitals and helping burn patients within five years.

What will they need before they get there? "Money," Jeschke said laughing. "We need money. And we need more people to work on it."

In September, members of the team, including University of Toronto PhD student Lian Leng, were selected as the Canadian winners of the 2014 James Dyson Award, a prestigious international engineering prize.

Should the team succeed in getting their project into hospitals, they'll help change a process Dr. Marc Jeschke said is in dire need of an upgrade.

Current skin grafts require removing a healthy section of a patient's skin to cover their wound, essentially creating two wounds and prolonging the rate of recovery. Jeschke said they hope their printer will drastically cut down the recovery processes.

The Canadian team showed CBS News their new prototype for the 3D skin printer. "It will probably keep getting smaller," said inventor Lian Leng.

Read more: How 3D printing could revolutionize burn treatment