Monograms

I am trying to make a round monogram such as this:

I have seen an old post about using the line tool and making it by hand but i am having a hard time doing that.  the monogram will be cut out in vinyl (car decals) so i need to be able to make all the letters.  I have tried the envelope tool but that just wraps the letters around the circle like a sphere shape. 

Is there an easier way to do this?  It would be nice to be able to do triangles also but I need to conquer this one first :)

Any help is greatly appreciated!!