When I was involved in re-enactments I made lots of different stencils by the following methods.
Photocopying the original article if it was flat and not too heavy for the copier, encapsulate the copy, then cut out the lettering with a scalpel type craft knife.
Making up the artwork on a computer, printing and encapsulating, then cutting out the letters.
Tracing onto acetate, (overhead projector film), enlarging the tracing on a photocopier, tidying up the lettering, reducing back to correct size on the photocopier, encapsulating, cutting out lettering.
For the stippling, I used the sponge side of a small washing up sponge, (the scrubbing side adds some rigidity to the sponge. You can get packets of 10 - 15 sponges in most pound stores, so they are cheap enough to throw away after each job.
Use paint that is slightly dry, or thick. Old paint often works well if it has not discoloured in the tin.