I've found Delrin/acetal to be a nice machining material. I suggest using HSS cutting tools with a fairly positive rake on top/side so there is a sharp cutting edge. The shavings can be quite stringy, but other than that, it cuts like butter and size is easy to hit. I use a pair of side cutters to cut the shavings up if needed, but you could also use your jack knife or something else.
YMMV,
Ted
YMMV,
Ted