Is Cedar Poisonous?
NOTE: I have rubbed in mineral oil, if that changes things, do tell.

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If you're sure your wood was not treated with chemicals before you got it then it should be good.
But just to make mom happy you could seal it with clear lacquer. The mineral oil doesn't really seal it.
Here's a google of "toxic wood" and I could not find cedar anywhere in the list.
Or you could try with pine. Some of that is pretty easy to carve if it doesn't have knots.
http://www.firepit-and-grilling-guru.com/cedar-plank-cooking.html
Lizzy
For instance, there's a list of woods a pipe carver should not use, and the pine family is one that's high on the list. Cedar isn't specifically pine, but it's close enough for me.
(don't get me wrong, I love cedar, but I keep it off kitchen utensils list.
BTW, cedar is also a porous wood, so not the best choice for a cooking utensil because it will readily absorb contaminants (bacteria, mold, etc...)
Sorry, nice gesture, but perhaps you should consider a harder wood like maple or osage orange.