Alphabet blocks

Pretty inexperienced wood worker here...
I would like to make some wooden alphabet blocks as a first project. Similar in idea to what you see on this site. http://www.oldfashionedblocks.com/alphabet_abc_blocks.html Maybe with a wagon to go along with it.
Although it doesn't quite show on the website. The borders and letters are 'raised' from the background of each block. I was wondering what tool you would use to create that 'raised' effect. Would you trace out the letter and border on a flat surface and then use something to carve out the waste (a router, dremel type tool, or just an old fashioned chisel). The border and letters are probably less that 1/16th" raised above the background.
Can anyone help with an answer to this?
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From A pretty old Norm epsisode of the NY Workshop,, Norm,,, routs out the top of the block,,,, then actually uses the scroll saw to saw out and apply the number or letter into the recess of the block. Larry
Joe wrote:

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You can actually buy wooden letters in almost any craft store for pretty cheap.
Just route the top of the block and glue the letters in.

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old
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