I found a cute picture of a teddy bear and erased the background before bringing it into XCS. First, we will need to turn this picture into a vector. I selected the bear picture and clicked on the Outline tool. Change the offset distance to zero and click OK. This will make a copy of the teddy bear outline. Delete the original picture, we do not need it anymore.

Next, we will need to make the napkin ring part. Go to Shapes, and insert two circles. Change the size of one circle to 55 mm and the other circle to 45 mm. 45 mm is approximately 1.75 inches and is a common napkin ring size. Select both circles and use the Align tool to center align both circles horizontally and vertically. With both circles still selected, press the Combine and then Subtract tool to turn it into a ring.

Drag the bear on top of the ring, and resize the bear as desired. You will want the bottom of the bear to touch the ring slightly. Vertically center align the bear and ring. Select the bear and using the Outline tool, make a 2mm offset outline next.

I went ahead and changed the colors to match what we will be doing when we process it on the laser. Change the 2mm bear outline and ring to Cut (Purple). Change the bear drawing to Engrave (solid orange). Next, select the purple bear outline and purple ring and Combine > Unite them together. The napkin ring holder file is now done.

Time to cut and engrave. I used the provided settings. I hope you enjoyed making this with me.