In a setup where you will create lots of tiny voids … like a canister filled with 1/8" balls … layer the things in and vibrate the heck out of it. If you don't have a vibrator, use a hammer drill with a 1/2" bolt chucked in it.
An oblong canister (open top) is the wisest choice, around 2X2X4". I would not use white out or other paint. Put down a 1/4" layer of powdered steel and cover with a single layer of balls, Tap them down into the powder with a block of wood and vibrate the canister, repeat as you fill the canister and settle the balls down. Finish with a good layer of powdered steel and vibrate well. Weld on the top while clamped hard. As with all canisters, when you think it is soaked hot enough for long enough, heat it a good 15 minutes longer. The powder does not transmit heat like solid steel does and it tales a LOT longer for the center to get to welding heat. In the subsequent heats as you compact the billet and weld it, also soak longer than you think is needed. Use "V" (squaring) dies. By the time it is reduced by 25% or so, to around 1.5X1.5", it should be a solid bar of steel. Don't be in a hurry to cut the canister off. The longer the skin is on the longer the core is protected from oxidation and the solider it gets. Draw the billet out with the canister on and when it is a 1/2" thick flat bar, grind what's left of the canister skin off starting with the sides. By now it will be pretty thin. If the top and bottom peels away easily with an air chisel, fine. If not, just grind it all off. Of course if you have a surface grinder there really isn't any reason/need to peel it off.