to carve
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to carve
To work material, usually wood, with a knife or another sharp tool in order to create a shape, figure, or ornament.
Für seinen Enkel schnitzte er ein kleines Holzpferd.
He carved a small wooden horse for his grandson.
When naming the material something is carved from, you use the preposition 'aus' (from/out of). The created object is in the accusative.
Sie schnitzt eine kleine Eule aus einem Stück Lindenholz.
She carves a small owl from a piece of limewood.
'Schnitzen' (to carve) is most often associated with wood. Typical objects that you carve are 'Figuren' (figures), 'Tiere' (animals), 'Masken' (masks), or 'Ornamente' (ornaments). At Halloween, it is also common to carve faces into pumpkins.
Die Kinder haben im Herbst lustige Gesichter in Kürbisse geschnitzt.
In autumn, the children carved funny faces into pumpkins.
Careful: In southern Germany, Austria, and Switzerland, 'schnitzen' can also mean to cut vegetables or fruit into pieces. In other regions of Germany, only the verb 'schneiden' (to cut) is used for this.
Für das Gulasch müssen wir noch die Zwiebeln schnitzen.
For the goulash, we still have to cut the onions.
The person who carves is called 'der Schnitzer' (carver). The same word also occurs in the fixed expression 'einen Schnitzer machen', which means 'to make a mistake'—like a woodcarver who makes a wrong cut and ruins the workpiece.
Bei der Prüfung habe ich einen dummen Schnitzer gemacht.
I made a stupid mistake on the exam.
to cut
'schneiden' and 'schnitzen' can both mean that you work on material with a sharp tool. 'Schneiden' is general: you divide something or cut it into pieces. 'Schnitzen' is more specific and usually means making a shape or figure out of wood with a knife. In some regions, 'schnitzen' can also be used for cutting fruit or vegetables into small pieces, but in standard German people are more likely to think of wood and handcraft. The words are easy to confuse because carving also involves cutting. If you are only making pieces, you usually say 'schneiden'; if you are creating a shape or figure, 'schnitzen' fits.
Im Ferienkurs schnitzt du eine kleine Figur aus Holz.
In the holiday course, you carve a small figure out of wood.
Wegen der Gäste schneide ich den Kuchen schon vor dem Essen.
Because of the guests, I'm cutting the cake before the meal.