A pair of rotary die cylinders having co-acting cutting blades formed by integral lands projecting generally radially outwardly from the main body of each cylinder and a method of making them by rough machining a tool steel workpiece with conventional cutting tools to form the general contour and path of the cutting blades and thereafter final machining and simultaneously heat treating the cutting blades with a laser to provide an accurately formed and hardened cutting blade. Preferably, the rough machining with conventional cutting tools and the final machining and heat treating by a laser are performed with the same machine tool, such as a computerized numerical control (CNC) machining center. Such a machining center permits rapid and accurate rough machining as well as accurate final laser machining of the cutting blades. The more accurate final machining accomplished by a laser produces a more accurately formed cutting blade and also simultaneously heat treats the blade with minimal distortion of the blade and without any significant distortion of the core or body of the cylinder.