The process you are looking at on your blade is known as jeweling. The best way to do this is on a milling machine in order to control the pattern. If you want a nice looking and uniform pattern you will need to make sure the finish on your piece is very nice first. The next thing you will need to do is determine the size of the pattern you want to put on your piece. There are 2 ways that we did this in the tool room. 1) use a hickory dowel that has been faced off in a lathe to make sure you have a good flat surface on the end of the dowe. 2)Use a rubber impregnated rod with the grit in it. If you use the hickory dowel you will need to use a very fine lapping compound. If you use the rubber rod, watch the outside as it will flare out. You will need to keep the skirt trimmed or it will muddle the finish. Just to give you an idea of a pattern, you can use a 1/2" dia rod and when you move the spacing, move 1/4" on each move. Over lap each row the same amount also. Use a high r.p.m. and a light touch. Move the quill up and down with each touch so that you can see the pattern. Be careful and try not to do it with just a one time pressure application, or you will end up with swirls that have deep looking scratches. If you will do a search on the internet for "rifle bolt jeweling" you can see some examples of what you are doing. Good luck.