Yep, that is how it's done, freehand. If you decide to have a go as has already been suggested on here print out your letters from the computer and then stencil/carbon paper them onto the wood. Once this is done take a fine craft knife and go around the letters scoring just below the surface to break the fibres. Now take a small hand router of 1/4" and the smallest cutter you have and go around the letters or in your case inside the letters. As you creep up to the edgeof the letter it will peel away leaving a neat edge. Practice it first on a piece of scrap. Don't hold the router by the handles but by the baseplate with finger and thumb either side, this gives more control. You will only be routing to a couple of mill at each pass so there will be no snatch or grab and it will be easy to control this way. I hope this is of some help to you. :wink: