I annealed it before I even touched it with my grinder. I cut the handle shape out with my cutting torch. I did the rest of the shaping, including doing the edge with my angle grinder, plus a little bit of polishing here and there with little handheld belt sander.
From beginning to end here goes.
1) get into arguement on "teh intarweb" regarding E-Tools (heh)
But the real number 1 is.
1) Find yourself a suitable chunk of spring steel (I found a section of leaf spring in my welding shop from a different project) (we were trying to retrofit a leafspring suspension on the rear of my friends motorcycle becuase it would look cool)
2) heat up that bugger nice and red hot, also make sure to take the bend out of it if there is one.
3) draw the desired shape, and cut it out when it is cooled
4) cleanup and bevel grinding and drill holes to attach handle scales or cord wrappings.
5) heat treat by heating it up red hot, quenching in motor oil, clean off the scales and temper it with the torch.
6)touch up grinding/final edge grinding.
7) post pictures on the net.
That's about it, I really only have maby an hour's worth of work on it.
I'm really not sure on how well it would hold up, but for an utlity beater emergency tool, it should work out just fine.