Or build a pantograph (I'm sure there's an instructable on that topic) and use it to enlarge the letters by tracing a smaller copy. Or buy templates; they are commercially available.
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I do this fairly often, and I print off the lettering that I want, in about 50 point. I then use a drawing enlarger and enlarge it to the size I want. Alternatively, you could print off the lettering full scale and use carbon paper to transfer it. I also believe that you can do enlargements at an office supply store fairly cheap(here it is $0.08/page). It might be cheaper than the ink that you use printing one character to a page. Willard
Print your own ? Use a very big font, and print a single character to a page. Use spray fixing glue to stick the characters to the wood, then carve the letters.