I suppose you could use either a blaster or a water jet but I have no idea why you'd want to. Put it this way, using a rotary engraver (even a CNC one) will cost you maybe $2-4k if you buy brand new or $1500 or less used. They take about 5 min to set up, you get great depth control and all the clean up required is to blow the part off. With a water jet you're going to be into the machine probably 5 figures to have wet, abrasive shit EVERYWHERE and I honestly don't know how well you could control your depth. And yeah, you could use a sand blaster to do it with a solid template but you're going to have to lay into the metal for a bit to get the right depth and again, abrasive shit all over your customers nicely finished gun. Y'all are trying to reinvent the wheel here. There are generally 6 ways to engrave that are generally accepted in the firearms industry.
#1 Rotary engraver or CNC (cheap, easy, and efficient)
#2 Laser engraving (VERY expensive for the machine but works well)
#3 Roll marking (not practical for the little guy as the rolls are spendy)
#4 Electrochemical etching (takes practice and looks good once you get it down but only works on metals)
#5 Stamping with letter punches and a hammer
#6 Casting or forging into the rough part as it's being made
That's it. Pick one of those and run with it.