Engraving is one of the things I’ve noticed the machine is very good at. I use small 1/8" engravers myself and the detail it gives is quite nice. Also seen quite a few signs made with a v-groove bit. I haven’t seen anyone try a ball nose bit yet but it should work fine. The only consideration I’d make is the feed rate there. A 1/4" 2 flute ball mill (which is pretty typical) needs to be run around 2000mm/min @ 10000 rpm, and that’s faster than the Malsow can currently feed (which is 1000mm/min). An 1/8" one would work well, however.
The trick is to get your depth right. One thing I think we’ve noticed is that we often have too deep. With my little engraving bits, I originally went 2mm into the material but found that to be too much. I revised my depth to be .5mm and that was much better.
My profile pic is a good example of engraving.