So, lately I’ve tried some new techniques. I’ve done a lot of googling, and found not a lot of clear answers. So, here’s a tribute to my questions and the answers that I discovered via trial and error. Now I know! Maybe if someone else wonders they may somehow find the info on this site!
1. Can you use the Sharpie oil paint marker on milk paint? 
A: Yes!
2. Can I put an oil finish over sharpie paint marker, and then finish all that with shellac?
A: Yes and NO! I oiled the sharpie paint and it was fine, no smearing. But then I was surprised that when I brushed shellac over it all the white began to smear. I ended brushing over just the white with shellac and trying to brush around the lettering after. Overall this makes the finish uneven. I’ll see later if it continues to smear with future coats. But for now I plan to stick with milk paint for lettering, especially if I plan to cover it with shellac.
3. Can I use oil to finish cedar? Can I use wax over that?
A: Yes! I used Tried and True Polymerized Linseed Oil on this lovely cedar from Honduras. Really makes the grain look amazing, and though it won’t dry in the normal way that an oil finish will because of the cedar oils, I like the look better than using a glossy finish. I then used an oil/beeswax mixture, warmed on the stove and rubbed in by hand and toothbrush, over the oil. It soaked in after a while and dried to the touch. I hope this will add some protection and prevent the oil/cedar wood from drying out to quickly.
Heartwood Rocking Horses 