So far I have discovered that while hollow punches take quite a severe
whack to punch through heavy paper stock, I believe that punching
is the way to go.  I punch the inside hole first, then use a small jig
to center the punch for the outer circle.  It would be nice to have
an automated production device, but I'll go with the Fred Flintstone
approach for now.  It might be better to use a punch and die that
starts on two opposite sides and cuts like scissors as it comes down.

Another trick I discovered is to color my Aleene's glue with green food
coloring to make it easier to apply it evenly to the rings with a small
brush.  Putting white on white was very tedious.  I use a three-piece
jig made of UHMW plastic (a type of polyethylene) to assemble the
pouches with the proper shape.

This project is all very experimental and I am open to all low-cost
solutions.  I'll let you know how it progresses.

Gordon Ramsey