Once the handle outline has been traced to the block, I use a coping-saw to cut out the handle shape. I don’t generally use power-tools because I prefer the more personal touch of really making things with my hands. If you’re inclined though, a jig-saw would work. Coping saws are handy for this kind of cutting due to their thin blades and deep frames.
When cutting out the handle shape, it’s best to leave a safe margin. The excess wood may be removed later by filing.