Here's what you need:
-(Optional) Cold Metal Blueing Agent
Now lets get started
IT'S LEGAL! U.S. Title 18, Chapter 17, Section 331: Prohibits among other things, fraudulent alteration and mutilation of coins. This statue does not, however, prohibit the mutilation of coins if done without fraudulent intent if the mutilated coins are not used fraudulently.
Step 1: Hammering and Cutting the Nickle
As you will see in the first picture, I simply just hammered one side of the nickle. This gives you a longer blade.
Then we start cutting. Get your pen and draw out your pattern, it should look something like the second picture below. Now take out your hack saw and start cutting, a few drops of oil can make the cutting process much easier. Be careful not to make the little bar hanging off of the nickle too thin, its what we are going to wrap the penny around, and we want it as strong as possible.
Once you get your nickle cut out, click on the next step to learn how to put the penny on it.