Step 1: Place the inlay on the surface of your project and position as desired.
Step 2: Using the inlay as a template, scribe around the edge with an X-acto knife.
Step 3: Using a straight bit in your router, set depth slightly less than thickness of inlay. Rout out surface close to, but not meeting, scribed line.
Step 4: If you don't have a router, use a chisel bevel edge to pare away surface to required depth. Pare away the remaining surface wood to the line.
Step 5: Apply a thin coat of glue to the inlay's untaped side. Place inlay into the recessed area. Cover with a piece of wax paper and clamp, if possible, beneath a block of wood.
Once glue has dried, sand top side lightly to remove paper tape.