I prefer to work with carbon steel - it's tougher and holds a better edge (well REALLY I'd like to work with damascus - but I'll get there). With a blank of carbon in front of me I envision the shape of the blade - draw it onto the steel and start cutting with the recip saw and the die grinder with the cut off blade.
Once the shape is completely cut out, I hit it with the angle grinder to rough in the bevel and then I run it across the belt sander with the course belt and see where I'm at. Usually I need to repeat the grinder to sander step three or four times so I don't destroy a blank of steel by going too far too fast.
Then I do the heat treating. I use the acetylene torch to heat the blade to a uniform cherry red along all edges. I use a magnet to check critical temperature. When it's at the optimum temp I quench it in a brine solution. After that I test the edge with a file to get an idea of the rockwell hardness. When the file skates just right I know it's at about 60 rockwell. Soft enough to TAKE and edge - hard enough to KEEP it.
Then I make a guard for it, solder it on and start to work on the handle. I use a wide range of exotic hardwoods for the handle scales, they are slab or hole saw cut as the tang dictates. Once the handle is rough cut I drill the rivet holes (if it's a slab) - or create and tap and die a pommel if it's a narrow tang and expoxy it all together.
Then all that's left is the polishing. I use a fine belt on the belt sander and spend a few more hours sanding the blade by hand. The final step is back to the shop for a shot at the polishing wheel. Back to the house for several hand rubbed coats of Tung Oil and that's it. Once the sheath is complete I have a beautiful creation!