It seems that there is no end to ingenious woodworking tools, such as this 3-D Router Pantograph from [Woodgears.ca]. The pantograph, a design using linkages to trace and scale drawings, may have been invented in the 1600s, but if we were honest, most of us haven’t heard of this device. This particular pantograph is able to trace letters or other stencils in three dimensions by pivoting about an additional axis.
If you’re wondering where to get these stencils, they’ve got you covered with an online stencil generation tool. However, if you want to make even more detailed stencils, we might recommend using a free drafting tool such as Draftsight (here’s a review), or Sketchup.
[Woodgears] gives a good explanation of how it’s made in the video after the break. You can also buy plans for it if you want templates to use to cut everything.
On the other hand, if you’re feeling a bit more (or less depending on your skill set) adventurous, you could always try building a CNC router!