Please Help! Newbie - "Outside Path" question

Seth

Thank you so much for the response - yes I see what you mean. And I see the tabs appear when I do select “cut outside shape path” - the issue is that the shape disappears. I cannot edit the existing shape. SO Yes, I cut around the “shape” but now I want to lower the shape down some, and create designs on the inner part of it. If create a square shape, then “cut outside shape path” on that square shape; how do I edit the inner shape?

Here is a pic before I “cut outside shape path” - you can see that it is a lid, the design is a 1/2 thick lid with a 1/4 recess cut along edges so it fits inside base of box.

Below is a picture after I add the “cut outside shape path” option.

You can see, the design has totally changed! I just want to design the piece to the exact size and cut along the perimeter.

THANK YOU!