yes, the spindle is water cooled.
and yes it may be a silly question but how do they put the letting on the face plates
im guessing that plate has been etched, mayber with a lazor?
it would take quite a bit of effort to machine it with the diffrent size/thickness of fonts

if you tacticaly designed a line drawing decal you could easily drag engrave your plates add a touch of paint then burnish it clean?
a simple spring loaded drag engraver it pretty easy to make if you can get to a lathe?