Hey Reaper, Yes, you cut out the black. If your using 1/8" Baltic birch, you will want to stack 2, 3 or 4 layers of BB as you will have better control of your work piece. For this pattern you probably can use flat blades but would be a good opportunity to try some spiral blades. Flying Dutchman NS spirals are the best for portraits.
Good luck, we will all be pulling for you!
PS, Don't go after Janet, She is to young!