This paper models an algorithm which will detect geometrical rotation transformation occurred if any, introduced by the intruder to the stego image. The Huffman encoded secret image is overlaid on the selected bits of all the channels of pixels of cover image through matrix embedding. The proposed work introduces less distortion to the cover image during embedding process. As a result, the stego image is constructed with minor distortion and a higher PSNR (Peak Signal to Noise Ratio) value when compared with the cover image. A secret image which cannot be embedded in a normal LSB embedding technique can be overlaid in this proposed technique, since the secret image is Huffman encoded.