I recommend using carbide gravers. I recently engraved a No1 and used both Glensteel alloy gravers and their C-max carbide gravers. The C-max performed much better. Not nearly as many point breaks and since the carbide doesn't dull,( it goes along and finally chips the tip off, doesn't get dull like steel gravers) the cuts were more consistent.

No need to anneal before engraving unless you want case colors