1. Download a free mortarboard vector on the web and trace
2. create a 7 x 7 cm circle and a star
3. Add an internal outline to the circle and select subtract at overlap
4. Then place the star inside and select align horizontally and then click join
5. I added my text and with the option to curve text I arranged it around my medal
6. and add a small circle to hang the ribbon at the top

The engraving setting is for a well marked engraving, but you can adjust it as you wish.

For this 3mm wood I almost always use 3 passes for a clean cut, with the air assist on maximum.