Do you plan on cutting it? This is usually unnecessary since healthy Xenia will reproduce rapidly under the right conditions. All it needs is room to grow. It grows by direct extension from it's base producing a new colony/head. If it has something to attach to-it will spread. adam
One point to make, make sure that you either give plently of room to spread or prune it on a regular basis. Xenia can and will "crash" if not given ample water/gas exchange.
a razor blade would be fine, or even a sharp pair of scissors. then just use a piece of thread to tie the new frag to a rock until it attaches on its own (a few days).
I propogate my xenia for friends by leaning another rock against the base. After a day or 2 the xenia has grown onto the new rock. After a week or two the xenia splits onto the new rock.
You can also use a blade to cut off a branch. Place in a tupperware container with rocks on the bottom of your tank until they attach to a rock.