If inlays are to be flush and require sanding or stoning it is usually best to do that part of the inlay process before any close by engraving is done.
Detailing of the inlay can follow after the surrounding engraving is completed, and sometimes after a finish such as bluing on steel is applied.
As John said. For raised inlay I usually cut the cavity and sculpt the design within the cavity which helps keep from getting bits of steel showing through the gold when inlayed and sculpted. I then do all the engraving around the area except any stipple detail, then inlay and do all shaping and shading. Flush work that I do is mostly border lines and detail and I inlay anywhere along the way but leave the gold slightly proud of the surface so any damage I might incur can be polished out at the last step before working the gold down flush. I have had occasion when the flush inlay was first and taken down level with the surface, then slightly damaged while doing the other engraving and found I had to pull the gold and re-inlay because I could not polish out the mar.
Sam........these tips you are giving are really important. Especially the "proud" amount to allow furtherence of surrounding work thereby leaving a bumper on the gold. I appreciate that, although I have not ventured into gold, I reflect back to using copper as a inlay medium and remember, I messed it (copper) up working around the area. Thanks Sam