I would suggest taking a look at a window segment as that it pretty much all a cutter (punch) is, just without the entity part (i.e. the glass in this case).
The only bits you need to make a cutter is the punch mesh (that you have) and a nothing mesh to use as your frame (I just use a single polygon mesh scaled super small and placed at 0,0 just under the height of a segment floor.
You can also use the same as the window segment and add a filler entity to your punch like bars/repaired bricks to fill in the hole.
One tip though and many go wrong with this bit. Make sure you UV Map the punch mesh to the scale of a 100wx100h units segment wall as that UV Mapping will be used on the hole that is cut out. Also most times you will cut through 2x 5 units walls, so make the punch mesh deeper than 10 units and UV Map accordingly.