Create a new project in XCS. On the left toolbar, click on Insert and Circle (photo 1). On the canvas, draw an oval (photo 2).

Right click the oval and select copy (photo 1). In the white space of the canvas, right click the background and select paste (photo 2).

Select the pasted oval, and rotate 90 degrees. The rotate option is on the top toolbar next to the height (photo 1).

Select both ovals (photo 1). On the top toolbar choose Align Horizontal align center (photo 2). On the top toolbar choose Align Bottom (photo 3)

From the top toolbar, choose Combine Unite (photo 1).

From the left toolbar, select insert circle (photo 1). Draw a horizontal oval over the bottom of the design on the canvas (photo 2).

With the oval (nose) selected, right click the nose (photo 1). In the gray area outside the canvas, right click and select paste (photo 2).

Select both the original nose and face (photo 1). From the top toolbar, select Combine and Unite (photo 2).

Select the face and from the top toolbar select Outline. Change the offset to 4 (photo 1).

Move the outline to the right of the original image (photo 1). Right click the outline and choose black in the move to section (photo 2). I will start to use colors to describe which image we are working with.

Select the nose we pasted to the gray area (photo 1). Right click on the nose and in the move to area select purple (photo 2).

Right click the original face and in the move to area select red (photo 1).

Select the red face and from the top toolbar select Outline. Set the offset to 4 mm (photo 1).

With the outline selected, right click and in the move to area choose green (photo 1).

You should now have 4 Layers in different colors. In the bottom left of the screen is the layer panel. Ensure your colors are the same as I will refer to them by the color from now on.

In the layer panel, select the black layer (photo 1). From the left toolbar select insert rectangle (photo 2). Draw a short thin rectangle (photo 3).

With the rectangle selected in the upper toolbar enter -45 in the rotate box next to height (photo 1). Move the rectangle so it just overlaps the black face outline (photo 2).

From the left tool bar select Shape. Click the arrow pointing to the right next to the text Basic Shape (photo one). Choose the shape that looks like a raindrop (photo 2).

With the new shape select (photo 1) resize so the shape is relatively small (photo 2). You can click the handles on the sides of the shape and drag them toward the middle of the shape to resize.

With the raindrop select, in the upper toolbar enter 180 in the rotate box next to the height (photo 1).

 Place the raindrop so the triangular end overlaps the black rectangle and just touches the black face. Right click the raindrop and select Copy (photo 1).

In the upper toolbar on the far left, select the settings button (photo 1). Ensure Auto-snapping is turned off (photo 2).

Right click on the white background of the canvas and select paste (photo 1). Align the pasted raindrop butts up next to the original one with the triangular end overlapping the rectangle (photo 2). Repeat the process for a third raindrop (photo 3 & 4).

Select the three Raindrops. Hold shift on your keyboard while clicking on each of them (photo 1). Right click the selected area and select Copy (photo 2). In the white space below the the rectangle, right click and select paste (photo 3).

With the three pasted raindrops selected, on the top toolbar enter 180 into the rotate box next to height (photo 1).

With the three raindrops selected, position them so the triangular tips overlap the rectangle and butt up to the other three raindrops (photo 1).

Select the lower top raindrop (photo1). Right click and select copy (photo 2). Right click near the end of the rectangle that doesn't have a raindrop and select paste (photo 3). With this raindrop selected, in the upper toolbar enter 90 in the Rotate box next to height (photo 4). 

Position the top raindrop so it buts up to the top of the upper right and left raindrops (photo 1).

While holding the shift key on your keyboard, select the rectangle and all seven teardrops (photo 1). On the top toolbar select Combine and Unite (photo 2).

Right click the left antler and choose copy (photo 1). In the white area to the left of the black face, right click and choose paste (photo 2).

With the pasted antler selected (right antler) on the top toolbar select Reflect Reflect horizontally (photo 1).

Position the right antler so it overlaps about the same as the left antler. While holding the shift key down, select both antlers (photo 1). From the top toolbar select Align Top (photo 2). Ensure both Antlers are overlapping the black face.

While holding the shift key, select the black face, right and left antlers. From the top toolbar, select Combine Unite (photo 1).

On the left toolbar, select Shape. Click the arrow point to the right near the words Basic Shape (photo 1). Select the Leaf Shape (photo 2).

With the leaf shape selected, From the upper toolbar, enter 65 into the Rotate box next to height (photo 1).

With the leaf shape selected, drag the handles to resize the shape substantially. There's no exact science on the amount it should be resized.

With the leaf shape selected, move it so it overlaps the black face just under the left antler (photo 1).

On the upper toolbar, click the settings button (photo 1). Under Auto-Snapping switch to On (photo 2).

Right click the left ear and choose copy (photo 1). Right click on the white background of the canvas on the right side of the black face and choose paste (photo 2). This will be the right ear.

With the right ear selected, from the top toolbar choose Reflect Reflect Horizontally. Place the ear so it is aligned with the left ear and overlaps the black face (photo 1).

While holding shift, select both the right and left ears (photo 1). From the top toolbar, select Align Top (photo 2). Make sure both ears are still overlapping the black face.

While holding the shift key on your keyboard, select the left ear, right ear and the black face (photo 1). From the top toolbar select Combine Unite. This completes the black face which will serve as the background.

Let's move the purple Nose that is in the gray area to the canvas (picture 1 & 2). Make sure that you don't move the green and red faces individually. The outline needs to stay exact. 

From the left toolbar select Text. HELLO will be placed on the canvas in the default font.

Right click the text HELLO and under Move to select blue.

With the text selected a Text options box opens on the right panel. In the Text field enter the name you want to use. Also select a font (photo 1). The best option here is to use a font that unites by default. I chose Dancing Script as it requires the least cleanup (photo 2). In photo 2 I've indicated the areas that are not overlapping with a red X. All of the text much touch each other in order for this to turn out right. I've also highlighted in green the areas that are safe.

We're going to split the name into two text fields. Right click the name and choose copy (photo 1). Right click in the white space to the right of the name and choose paste (photo 2). Select the left text and change the Text field to just the letter that did not unite. If you're using the same font, it is probably the first letter (mines an R) (photos 3 and 4). Select the pasted text and change to be the letters that did unite and remove the letter that did not unite (in my case I'm removing the R and leaving andall) (photos 5 and 6).

Every situation is different when it comes to text. Depending on your font you may have to do each letter individually. You can also play with the spacing option in the Text Options box. Entering a negative number in that field will push your letters closer together. The most important thing is that every letter overlaps.

Position the overlapping letters to the letter that didn't overlap. Make sure they overlap now. The letters that were already overlapping should now be welded (photo 1).

Now select the text that did not overlap and while holding the shift key select the text that did overlap (photo 1). From the upper toolbar select Combine Unite (photo 2).

Position the name so it overlaps with the red face. The left of the text should overlap somewhere on the left of the red face. The right of the text should overlap somewhere on the right of the red face. Do not allow it to overlap the green face. Photo 1 shows a bad overlap as we're only getting one side. Photo two shows a good overlap on both sides. 

You may need to unlock the Height and Width proportions (photo 3) from the top toolbar to get a good overlap.

Select the name then while holding shift on your keyboard select the red face (photo 1). From the top menu, select Combine Subtract (photo 2). Photo 3 shows the final result of combining them.

In the layer panel located in the lower left of the screen, select the black layer (photo 1). From the left toolbar, select Insert Circle (photo 2). While holding the mouse down draw a small circle (photo 3). Change the width property to 10 mm (photo 4).

When holding the shift key while drawing a circle or rectangle XCS will draw a perfect circle or square respectively.

With the circle selected, from the upper toolbar select outline and leave at the default of 2 mm (photo 1).

Select both circles (photo 1). Right click and choose Group (photo 2).

Place the circles on the black face so the outer circle overlaps the face (photo 1). Select the circles and the face (photo 2). From the top menu select Align Horizontally align center (photo 3).

Select the two circles again (photo 1). Right click and choose ungroup.

Select the outer circle (photo 1). While holding shift on your keyboard select the black face. From the upper menu, select Combine Unite.

Select all of the elements on the page. In windows, you can press CTRL+A (photo 1). In the Object Setting panel that appears on the right, set your cut Power, Speed and Passes (photo 2). Machines differ and you may need to do a test grid to determine your cut speed.

Select the black face (photo 1). From the upper menu select outline and set the offset to 0.

With the outline selected right click and choose Move to blue.

With the engrave outline selected enter the settings for your engrave. Mine are listed above. Machines differ. You may need to run a test grid on your material to ensure you have the right settings for your machine and material combination.

Our Reindeer Ornament is finally done. Let the machine run the file and then glue the thin slat with the name and the nose to the background file. Paint if you want to.