Use a stud finder to locate the studs in the wall where you intend to install your recessed jewelry cabinet. Mark the inside edge of two adjacent studs on the wall with a pencil. These lines indicate the outside edges of your cabinet.
Extend the two marks you just drew, using a ruler to keep the lines straight. Draw two vertical lines to the desired height of your jewelry cabinet. Connect the two vertical lines with a horizontal line at the top and bottom, using a level to keep the lines straight.
Align the tip of a drywall saw with one of the horizontal lines near its center. Lightly tap the handle of the drywall saw to drive the tip of the blade into the drywall. Move the blade in and out of the wall in a sawing motion, cutting along the pencil line.
Cut through the drywall along all four lines using the drywall saw. When finished, remove the drywall cutout from the wall and set it aside. Work slowly and cautiously to avoid damaging the wall studs with the saw.
Measure the width, depth and height of the space between the two wall studs using a measuring tape. These measurements will be the dimensions of your jewelry cabinet.
Use a circular saw to cut two pieces of 1/2-inch plywood to the width and height of the cabinet. These boards will be the top and bottom panels of your cabinet. Cut two pieces of 1/2-inch plywood to the depth of the cabinet and the height measurement, minus one inch, for the side panels.
Slide the bottom panel horizontally into place between the wall studs so it's flush against the bottom of the wall space. Insert the top panel horizontally between the studs, positioning it flat against the top of the wall space. Drive nails from a nail gun through the edges of these panels into the wall studs and the back of the wall space to secure them.
Install the side panels vertically between the ends of the top and bottom panels. The widest edge of each side panel should be flush against the wall studs. Drive nails through the top and bottom edges of the side panels into the top and bottom panels and through the sides into the wall studs.
Measure and mark the position for your shelves along the side panels in pencil. You may install the shelves at regular intervals or vary the height to accommodate various sizes of jewelry. Leave 10 to 12 inches of open space at the top of your cabinet to hang necklaces.
Cut the shelves for your cabinet out of 1/2-inch plywood using the circular saw. Each shelf should be cut to the depth of the cabinet and the cabinet width, minus one inch to account for the thickness of the side panels.
Slide the shelves horizontally into place between the side panels. Use a level to make sure each shelf sits flat before installing it. Drive nails at a downward angle through the edges of each shelf into the side panels and the back of the wall space to attach them.
Cut a sheet of 1/2-inch plywood to the total width and height of your jewelry cabinet to serve as the cabinet door. Install two metal hinges along the underside of one edge of the cabinet door. Position the hinges about two inches from the top and bottom corners.
Hold the cabinet door up against the face of the cabinet frame and align the edges. Screw the other side of each hinge onto the inside of the adjacent side panel. When finished your hinges should be concealed inside the cabinet and the cabinet door should open and close easily.
Paint or stain your completed jewelry cabinet to match the existing decor in your room. Allow the paint or stain to dry completely before moving on.
Screw several small metal hooks into the back of the wall space about a half inch from the underside of the top panel. You can use these hooks to hang your necklaces inside your cabinet.
Place jewelry box insert trays on the shelves of your cabinet. These trays come in a variety of designs, often including space for rings, bracelets and earrings. Select the design that suits you best and fill the trays with your jewelry.