In recent days, rapid machining through digital prototyping has been popular for its applicability in a wide range of complex and useful parts. Rapid construction of prototypes from point cloud data based on section plane method is available, which is an approximate method. Discusses some suitable methodology for conversion of point cloud data to a physical prototype where data acquisition is through a mechanical touch trigger probing process using CNC milling machine. The process is quite useful for reverse engineering of complex sculptured parts. A concept called tangent plane method is adopted for the generation of 3D geometry on point cloud data of sculptured parts with due emphasis on probe radius compensation after data capture and tool radius compensation during tool-path generation. Computer simulated results are presented, based on real-world point cloud data.