Engraving until a very thin layer is left?

1/8" baltic is already pretty translucent.

If I were going to do it, I would instead use 1/16" maple hardwood (more consistent, no hidden knots etc) and glue it to a cutout layer behind it, which I would paint black to prevent all light transmission. That way you’d have really consistent thickness and light transmission with crisp borders.

I would use transfer tape like you would for vinyl to get the alignment right.

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