OK up to this point I have used a router with an inlay kit to cut out my inlays and create the recess.
I hate doing this, I feel like I have no control over the delicate inlay piece, and all it would take is one slip of the template and my drawer front or whatever I am inlaying is ruined.

What is the traditional method of creating a recess for an inlay. I have browsed the bookstores locally and found nothing worth buying. I have also searched the web with little quality result.

I would assume that the general concept would be to create the inlay, then use it as a template to mark the location of the recess. once marked use a chisel and router plane to create a flat bottomed recess for the inlay?

Any info or direction to good information would be greatly appricated. I can't wait to sell that router Inlay kit.