Carve terra cotta clay when it is still soft. This stage of the clay will be before it is fired in a kiln or air dried.
Use a sharp, pointed tool to carve on soft terra cotta. Press into the soft clay with the pointed tool until you penetrate about a fourth of an inch into the surface of the clay.
Follow a pattern to continue carving on the terra cotta. You may want to lightly trace into the clay with your tool to outline your pattern before you make the quarter inch carves into the clay.
Draw the designs you want to carve with a pencil on the hardened clay before you use an electric tool on it. This will allow you to be more accurate and will reduce the risk of making a mistake when carving on the terra cotta.
Trace the pencil pattern with an electric clay tool. Choose the clay tool tip according to how fine you want to make the cuts. A diamond wheel point is an example of a tip you might use for fine-line cuts in the terra cotta pottery.
Brush off any dust surrounding the clay cuts with a dry and soft paintbrush.