Papel picado is a traditional Mexican paper crafting (perforated paper), and it can sometimes be difficult to cut, especially when you are trying to cut fifty layers at once. To make cutting easy, you can use a chisel, and this video shows you how to make one with papel picado in mind.
You need an assortment of chisels to do the different cuts your design may require.
Tools: Masonry nails, torch, scrap steel, hammer, files, anvil, grinder and vise.
Heat the tip of the nail. To shape the nail, hit the metal several times. Use grinder and file to fine tune the shape of the chisel. To make a semi circle, start with flat nail. Hammer the sides and the middle until it takes shape. After forging, make the metal hard again by heating it and plunging it into cold water or oil. Final step is to sharpen the tip by using a water stone or ceramic sharpening tool. Polish the tip with a fine honing stone.