Step 1: Materials
Vegetable oil (Optional)
Step 2: Disclaimer
Step 3: Shave
Shave off the paint of the pencil, while holding the knife at a 45° angle, or less. Also, cut off the metal part with the eraser on it.
Step 4: Shave More
Shave off the rest of the paint until you have something that looks like this.
Step 5: Optional
You can rub some vegetable oil on this pencil, and sharpen it to make it work and to make the pencil look good. Preferably, use a knife to sharpen it.
Step 6: Finish
Congratulations! you now know how to make an old fashion pencil, from a pencil. And if you don't have a knife, pencils, or veggie oil, no worries. You can buy all of that from the dollar store.