I like the "playdough"/clay/mache' idea...... What about making the paper mache' with epoxy, placing the gob onto a blank that would approximate the tang of the knife that you're working on.
Just wrap the soft, uncured putty with cling wrap and grab and squeze (coat the "tang" with a release agent that would allow the halves to be removed after cure).
Drill the pin holes, add spacers, etc. before glue up to the knife tang, then fine sand and finish.
This, I think would be a form of "block" micarta that could be made/molded in choice of color(s) and should be as durable as the epoxy used.
I like the idea... What do I have that I could use for this project. I just might try it myself.
Jim L.