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I started with a coping saw, a file, and sandpaper. These days using a scroll saw and a belt sander for the rough work, and then still finishing by hand sanding.

I use 1/8 sheet mostly, though I...

Acrylic is pretty cheap and very easy to work with. But if there is a different material that you have experience with, go for it. And, naturally, you'll want something that you find visually...