Step 1: Hole Saw Minus Center Drill
Step 2: Cut a Hole Then Pry the Divot Out of the Saw
Step 3: Do It Many Times
Step 4: Sand Off the Rough Edges
Step 5: Enjoy Your Wooden Cookies
Step 6: Drill Two Holes
Step 7: Chamfer the Holes
You're not removing much wood so fingers are plenty of power.
This button has tooth marks from the wooden cookie step.
Now you can varnish your buttons, paint them, or soak them with epoxy. Or all of the above.
I'm skipping those steps because they smell bad.
Step 8: Button Lashing, Side View
I like to use these big buttons like cleats to lash the crossbeams on my outrigger sailing canoe. This particular lashing gets a lot of strain so I did a few turns of spectra cord first, then covered that with innertube.
When I'm done sailing and all tired it's easy to untie the beams to load the stuff on my truck.
Click on the little photos below the big one to see other views of the completed lashing.
To terminate the lashing just tuck the end under as shown. Don't tie any knots in innertubes, you'll just have to pick them apart with cold fingers later.