There are many different ways to layout your knife. You may chose one, or use different ways for different processes or different knife styles. For instance, a simpler design that you have made before you may decide to just draw an outline on the steel.
If I have a paper template I will usually use spray adhesive to stick it to a thin piece of wood and cut out the template. It can then be modified a little further if required and used for many knives.
You may find it better to stick the paper template directly to the steel. This is typically done only when using stock removal, and if you think you will only be making one of this style.
You can use layout fluid (dykem) and scribe or trace the outline to cut it out. (try the spray dykem, it works nice)
You can also redraw it directly on the steel with a permanent marker.
Always mark with a marker or paint or something similar on the inside of the blade. Scribe marks can be a pain to sand out even on annealed steel. Especially if your hand sanding.
You can also lay the template on the steel and spray over it. The outline will be the outline of your profile. You can spray with layout fluid or regular spray paint.
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