then (on the block) model the punch, the key being that you use a radius between this feature and the base feature. If the radius is too big or too small, a failure may occur
I suggest you to be carefull with placing the form feature (punch option). Use the right constrains and always use the show placement option to preview the placement of your punch tool.
Carefully choose the right side on the side (during form feature creation) and you will have the right results.
If the tool is outside of your model the the system gives you the message : Could not intersect part with feature because the software cannot find intesecting surfaces to calculate