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Here is a great summary from EasyBIB of how to cite an image either from a digital source or an image you have taken. The video describes the logic of how it all works and how to cite the work in-text. In essence, once you have created the reference for your 'works cited' list then in text citation is similar to other references you have.

To format the image itself in the midst of your text, follow the below guidelines from the OWL Purdue guide. In essence, label the image as a figure (e.g. Fig.1) followed by a label that includes a title and/or a brief caption with any relevant source information.

From OWL Purdue guides

Figures

• All visuals/illustrations that are not tables or musical score examples (e.g. maps, diagrams, charts, videos, podcasts, etc.) are labeled Figure or Fig.
• Refer to the figure in-text and provide an Arabic numeral that corresponds to the figure. Do not capitalize figure or fig.
• MLA does not specify alignment requirements for figures; thus, these images may be embedded as the reader sees fit. However, continue to follow basic MLA Style formatting (e.g. one-inch margins).
• Below the figure, provide a label name and its corresponding arabic numeral (no bold or italics), followed by a period (e.g. Fig. 1.). Here, Figure and Fig. are capitalized.
• Beginning with the same line as the label and number, provide a title and/or caption as well as relevant source information in note form (see instructions and examples above). If you provide source information with your illustrations, you do not need to provide this information on the Works Cited page.

These Sample Papers on the style.mla.org website give you a good idea of how your paper should look. The first example by Catherine Charlton has some great examples of how you can cite and format your images.