I used that method, Ian, for the last boat mould I did, the Interceptor Pilot boats,from Safehaven Marine, but the problem with that was that no matter how well you get a good finish, the plywood cross frames tend to show up on the master mould even though you can't see them on the plug, and you have to then do a lot of cutting back on the mould with wet and dry.
The plug I've just done for the lifeboat is p on f because the boat is quite large, saving weight when you're moving it on the bench.but in the past I've used bread and butter in solid and shaped planks of both Obeche and even mdf. however mdf can only be sanded, and not wet and dried as even with plenty of coats of sealer, it still lets water soak in and then it balloons up and spoils the plug.......I've tried quite a few methods over the years and to be honest, the finest for making a plug has got to be ( in my humble opinion) solid or shaped bread and butter obeche.........it carves beautifully and sands perfectly.
Neil.