Select a large log of sufficient girth from which you can carve the figure. It should be of sufficient diameter to allow you to carve away a good portion for the features. It should also be relatively free of cracks, knots, and splintering sections. Depending on the size you want, disused railroad ties are often a good and available choice.
Draw out how you want your figure to appear on the log, both face on and in profile. Make sure that you are very careful to add all features you want included in the finished product. This will be your last chance before cutting starts to adjust the design, so take your time and be sure that you have the design you want.
Cut out the rough form of the figure using a saw. It is common today to use a chainsaw for this part, but that is up to you. Using the profile as a guide first, cut along the outline. It may be necessary to redraw the outline after you finish cutting the first section. After this, rotate the section of wood and continue to follow the outline with your saw. When finished you should have something that is starting to look like what you want.
Carve out the fine details of the headdress, the clothing, facial features, and the hand grasping the cigars using chisels. Different sizes make the job easier and more accurate in fine detail. Take your time and draw the image out slowly with your carving tools. This step requires the most patience and skill.
Age your carving by quickly going over it with a blowtorch. Do not linger in one spot too long, just enough to raise the deep browns and blacks in the wood. Apply paint as desired. For an antiqued look, mix the paint with water (or paint thinner if using oil based) and brush on sparingly. Cover entire carving with a deep walnut or chestnut varnish to complete the antique appearance.