Step 1: Materials list
Printer with mirror image option
Acrylic craft paint
Assorted brushes, including tiny ones
Watercolor pencils (for shading)
Stencil transparency film
Picture hanging hardware
Step 2: Prepare the wood
Do a whitewash with white acrylic craft paint and a wet brush. Hit both sides and all edges, but don't go for a solid finish. You want the grain to show through.
Step 3: Print the names
Set your print properties to narrow margins, landscape orientation, and mirror image. Trim the white space from your pattern, lay the pattern onto the wood, and rub firmly with a burnishing tool over the entire inked image.
Step 4: Get really comfortable
In case you're tempted to outline with a Sharpie, I advise against it. I did that once, and the shellac spray caused the edges of the letters to feather badly. Stick with the acrylic paint for a sharp, crisp line.