The quarter isn't mine. A friend showed it to me. After browsing through other posts I realize my pic is pretty crappy. I am def going to try to post another pic tthat is better because I couldnt see any kind of work done on the quarter. I have been searching the net and the only thing that I have found was an old ebay post of a pendant someone made of a 1964 quarter that looks the same but they cut out Washington. I couldnt find any other info on it but that piece sold for $7.
which is made of silver making it worth more on top of the fact the one your are describing is a cut out like you said which is why it sold for $7. Not because thee was a cigar.