Before running the project ensure that all the settings are appropriate for your machine.  The diameter of the top layer of the coaster is 4 inches, but you may prefer to scale this up or down for your own project.  

On this project, it is important to take your time removing the inner most cut out.  This is the area between the circle and the palm tree.  We will be using this for the inlay.  It does need to be removed if you will be staining it a different color as I have in this how-to.

Next, I applied stain to both parts of the top layer of the coaster.  I used a stain with a color called cherry and the other was mocha.  These two colors provided the contrast desired.  You could alternatively let one of the parts be a natural wood color.  Removing it would simply ensure that you did not get stain on it.

Add a thin layer of glue to the back of the inner most part, which is the area between the palm tree and the circle.  You will have to work a little bit to get these lined up, since the xTool laser has such a high level of precision and a very thin kerf, the two parts fit together with a very tight fit.  It might seem like they won't fit at first, but just keep working with it and you will get them back together.

Next, use a damp cloth or a sponge to wipe away any glue that squeezes out.  I am using a wet paper towel in the picture.  Be sure to clean up as soon as you assemble.  Once the glue begins to harden it is nearly impossible to get it off the wood. 

Since the coaster will be in contact with water, it is best to add a couple of coats of polyurethane.  I use a spray polyurethane for this project that dries with a matte finish.  I would use a couple of coats. Sand as directed by the manufacturer of the finish to achieve a very smooth surface.