Boot a qcow cloud-init image with kvm

create-vm-cloud-init.sh

img_url="http://cloud-images.ubuntu.com/releases/xenial/release"
img_url="${img_url}/ubuntu-16.04-server-cloudimg-amd64-disk1.img"

wget $img_url -O disk.img.dist

cat > my-user-data <<EOF
#cloud-config
password: changeme
chpasswd: { expire: False }
ssh_pwauth: True
EOF

## Convert the compressed qcow file downloaded to a uncompressed qcow2
qemu-img convert -O qcow2 disk.img.dist disk.img.orig

## create the disk with NoCloud data on it.
cloud-localds my-seed.img my-user-data

## Create a delta disk to keep our .orig file pristine
qemu-img create -f qcow2 -b disk.img.orig disk.img 20G

virt-install --import -n xenial --memory 4096 --os-type linux --vcpus 4 --disk path=/tmp/disk.img --disk path=/tmp/my-seed.img --network default --graphics none --console pty,target_type=serial  --debug