Do you know for a fact that it was the gasket that failed? You pulled off the cyl and saw that it had torn or leaked put at some place?
The treatland paper is fine to use, but thin cereal box paper does work well in future needs.
As far as your question on process.
I like to use scissors to cut the outside shape, then use a punch on the student holes. I use an exacto to cut out the center area for the cylinder, and place the gasket on my cylinder at this point to use the exacto to carve out the transfer area so that it is exact to the cylinder.
Same process goes for the intake gasket.
You cant make exhaust gaskets yourself. You need some serious press/punch stuff because they have to be metal lined. I got some exhaust gasket material and the size snips you need to use to cut the stuff doesnt work for small cuts so the center and stud hols were impossible to do. And a paper punch doesnt go thru metal.