Is there anyone that knows where I can find a damask cutter set? (like cookie cutters) And if that doesn't exist....does anyone know who has the best prices on the damask stencil set ?

Not sure what country/region you are in, but www.flourconfections.com and www.designerstencils.com both carry the stencils.

Sugarshack sells some filigree lace cutters that are kinda damask-ish looking when put together - check out

http://www.sugaredproductions.com/Cutters.html

Jennifer Dontz (jennifermic) also has some cutters http://www.jenniferdontz.com/estore.php?category=cutters