Cut the waxed paper, on the inside of the pencil line. You want to cut away the lead, because eating lead is never a good idea! If the thought of using a pencil bothers you, use a pen, or a pointed object to score the line, before cutting.
Grease the pan, liberally, with shortening. Crisco is my brand of choice. This is when rubber gloves come in handy.
Center the parchment or waxed paper cut out in the pan.
Give the paper another coating of shortening.
Then dust the inside of the pans with all purpose flour. If you are making a chocolate cake, you can use sifted cocoa powder.
Prepping cake pans will ensure that your cake won't be a wreck! If you are going through the effort to make something, do it right.