Draw an appropriately Dwarfy pattern on a piece of paper. This will act as a template so that the Waystone can be reproduced as many time as you'd like. I have scanned in a template used for this example so that you can use it. Download it here.

Celtic knots seem to be the best iconography for Dwarfs. Of course, Dwarf runes can also be used. If you need any help coming up with a pattern or rune, look to the Dwarf Army book (p. 73).

Now, using the template and some thin card, transfer the design and border to the cardboard using a thumb tack (punch tiny holes through the pattern template to mark the lines). The best card stock to use would be cereal box cardboard, simply because it's thin but still has enough depth to drybrush easily.

Next, play connect the dots. No, really, this will help you see where you need to cut so that you don't chop off a corner that you didn't mean to. A black ball-point pen works best. Use the original template for reference.

Cut out all of your pieces using a brand new hobby knife blade. Trust me, you need a new blade. No amount of tears or cursing will make you feel better after shredding your intricate work with a dull knife blade. If you need to, number your pieces from top to bottom, left to right. This may keep you from getting a headache during assembly.

Now, cut a piece of 9/16" thick foam to the width of your Waystone. If you are planning to make a bunch of these at one time, cut one long strip of foam. Lay the card border on top of the foam and make a cut with the hobby to make both match.

Once you have cut your foam to fit, glue both the border and the design onto the foam with wood glue. Use your fingertip to spread the glue around. Make sure that the glue makes it all the way to the edges of the card. Let this dry thoroughly! The final few steps require the glue to be totally dry.

While the Waystone is drying, grab a handful of bark. Use a hot glue gun (take care not to burn yourself!) to glue the bark to the hardboard base. Find at least one very thin, flat piece of mulch for your Waystone to stand on.

Experiment with your waystone and decide if you want it to lean at an angle. You can also compensate for uneven bark at this step.

Now, back to the waystone. It's time to make the Dwarf-hewn stone look like it has had better days. With a fresh hobby blade in the knife, hack into the edges of your stone. Don't just cut into the foam, though. If a cut is made into the cardboard design, follow it through. That's why you had to let the glue dry: So that the design wouldn't shift as you cut through it. Do as much damage as you like. I hacked the corner off of mine. Maybe time dealt a blow to the stone...or was it a filthy Goblin?

Glue the Waystone to the top of the flat piece of bark with wood glue.

Finally, water down a bit of wood glue and spread it over the base. Try putting a few small puddles of glue on top of some of the pieces of bark to represent debris falling from the cave roof. Before the glue dries, sprinkle sand and small stones (the best stuff comes from parking lots) over the base.

Once everything's dry, it's time to start painting!