Import clip art and select “Trace Image”.  Use the slider bars to adjust the image to get the results you desire.  When finished click “Done”

With your mouse separate the vector from the clipart.  You can now delete the clip art.

Select the new vector file, right click with your mouse and “ungroup”.

Select the orange part of the carrot and delete it.

While still selected assign the “Engrave” parameter and then re-group the image.

Draw a rectangle that measures 5" x 3".  Note you will have to unlock the aspect ratio to do this.

Add a 0.2 value to the radius to round the corner.

Duplicate this file and resize it to 7" x 4.5" and place it over the smaller rectangle as shown in the picture.

Duplicate this file and place in below the first one, we will use it to make the spacer.

Duplicate the larger rectangle and place to the right, this will be the back of the frame.  Use the picture as a reference.

Extend the smaller rectangle so the top overlaps the larger rectangle, make sure to select “Bring to front”.

Select both rectangles then “Subtract”, this will create the spacer.

All the pieces for the frame are now complete, it's time to add the bunny vector cut out.

Place the bunny on top of the front of the frame as shown in the picture.  I have resized the bunny to a width of 2.75". 

Select the bunny only and add an outline of 0.04, uncheck the “add inner outline for bitmap” then click OK.

Select the outline you just created and the inner rectangle of the frame and choose “subtract” this will create the cut out of the bunny.

Use the text tool to personalize the frame. Weld the text.

The design part of the project is complete.  I've used the layers panel to assign color to each part of the project: 

RED - Cut - Frame front, back, and spacer

PURPLE: - Engrave - Bunny and text.

See picture for reference.

I'm using 3mm basswood for this project.  I've secured it to the honeycomb, selected the material and performed the auto measure.

My engrave settings are: Power 35 - Speed 100 - Pass 1

My cut settings are: Power 100 - Speed 4 - Pass 1

Glue the spacer to the back of the frame.

Glue the Front of the frame to the spacer.

Let dry.

Cut your photo 5" x 3" and round the corners.  Slide the photo into the frame and you done!