Ghostpatrol did just that; carving and illustrating the image of the Blue Bomber into the surface of a series of pencils. The end result is pretty rad (pictured).
Ghostpatrol literally excavated Mega Man from the wood of the pencils. Arranged side-by-side, the pencils' surface were shaved away into a flat plain, creating a canvas. The final image is achieved through a mixture of drawing on and continuous carving the surface. Needless to say, that's some mighty fine craftsmanship there.
A whole gallery's worth of Ghostpatrol's pencil art can be seen here. There's a little something in there for everyone, so do give it a clean sweep!