So I am trying to create a text effect to look as if it is burned into the wood.  I am not happy with the way it looks currently (very slopy). I had tried to use the difference tool to create the highlights and shadows in the words but after which it cannot be wrapped?! does anyone have any suggestions?

I'd say it looks pretty good for the style of the entire piece. Maybe less blur on the char areas, but the inset looks fine. Maybe some shading inside the letter fill that matches the grain?