You can operate on the Finder selection as described:
Working with the Finder Selection
Combining the two you should be able to make a macro that sets the selected folder icon to the pre-selected on (pasting that icon into the Set File Icon action).
I have been fiddling with the links Peter emailed, but am clueless as how to proceed.
In the best of all possible worlds, I am trying to get two macros…
A) One that will change the icon of an existing folder.
B) One that will create a new folder and assign the default icon image to that newly created folder. Both would save a lots of steps, when one has to do it manually on Mac.
When a topic on the Wiki leaves something to be desired be sure to search the forum for examples. You'll usually find a multitude, although they're not always easy to understand.
Don't depend too much on the record function. It's very literal and will often give you a lot of junk along with any useful actions.
That said – it can be useful when you are learning and if you don't have unrealistic expectations.
You'll find that the more you use Keyboard Maestro the more you want to use it, because all those tasks that take seconds and minutes can often be reduced to milliseconds and seconds.