I've never participated in a contest on projects and thought I'd give it a go. Also I love my dog. This process will include Layering by Color, how to work with layers, uniting and outlining
Open a new project in Xtool Creative Space.
Set the Material type to the material you are working with. In my case I chose the 3mm Basswood Plywood A4 (photo 1).
Use auto measure.
Select Insert Image from the left toolbar and select your photo.
Select the image you added, click on Edit Image (photo 1).
I used the magic wand to remove part of the background (photo 2).
Press Save.
Select the Shape option from the left toolbar. Under basic shapes, select the heart (photo 1 & 2).
Move the heart shape so it is covering the approximate area you want to cover (photo 3).
With the heart shape selected, right click and select copy (photo 4). Move your cursor to the white area on the canvas, right click and select paste (photo 5). We'll use the copy we just made to outline the mask.
Now select the image and the heart shape overlapping the image. Right click and select Make clipping mask (photo 6). Make sure your image is lined up within the heart (photo 7) and press Done.
Align the heart so it overlaps the image a little (photo 1).
From the top toolbar select Outline and set the offset to 0 (photo 2).
Right click the selected outline of the image and Move to layer Red (photo 3).
With the image selected select Trace Image from the right panel (photo 1).
Adjust the settings in the window if necessary and turn on Layer by Color (photo 2).
New layer colors should be added. Select the new layers from the layer panel in the lower right (photo 1 and 2) and select engrave. Don't worry about the settings yet.
Select the heart shape. From the top toolbar, select outline and change the offset to 4 (photo 1).
Select the outline of the image and the inner heart shape. From the top toolbar, select Combine>Subtract (photo 1).
From the left toolbar, select Insert>Rectangle (photo 1). Resize the rectangle so it's a little smaller than the outer heart (photo 2).
From the left toolbar, select Shape>Basic Shapes>Heart (photo 1). In the upper toolbar in the Rotate box type -90 (photo 2). Position the heart so it is overlapping the rectangle (photo 3).
Select the rectangle and the heart. From the top toolbar select Align>Vertical align Center (photo 4).
With the heart selected, right click and select copy (photo 1). Right click the white area of the canvas and select paste (photo 2). Select both heart shapes and from the top toolbar select Align>Left (photo 3). While both heart shapes are selected, from the top toolbar select Align>Top (photo 4).
Before doing this step, left click on the background to unselect the two hearts.
Select the heart shape and from the top toolbar, select Reflect>Reflect Horizontally (photo 1).
Holding the Shift key on your keyboard, press the right arrow key on the keyboard until the heart is positioned on the other end the same way it's positioned on the left (photo 2).
Select the two hearts for the bone and the rectangle. From the top toolbar, select Combine>Unite (photo 1).
Select the two hearts with along with the image and right click and select group (photo 2).
Move the heart shape so it overlaps the outer heart (photo 3).
Select the outer heart and the bone shape and from the top toolbar, select Align>Horizontal align center (photo 4).
Right click the image and hearts and select Ungroup (photo 1).
Select the outer heart and the bone and from the top toolbar, select Combine>Unite.
From the left toolbar, select Text. Select the Word Hello that appears and change the options as necessary. Resize until it fits within the bone (photo 1).
With the text selected, select Align>Horizontal align center from the top toolbar (photo 2).
Right click the name and in the move to section select Green (photo 1).
Right click the outer heart and bone and in the move to section select Blue (photo 2).
If you want to you can label the layers for what they will do (photo 3). I just describe what they are and how they will process. Double click the name of the layer to change it.
Select your Blue layer and set the cut settings (photo 1).
Select your Black layer and set the engrave settings (photo 2).
Select your Purple layer and set the engrave settings (photo 3).
Select your Green layer and set the engrave settings (photo 4).