Abstract: An instrument system and method are disclosed for preparing a distal femur for the implant of a femoral component of a knee prosthesis by the removal of natural bone in the intercondylar area of the distal femur to prepare a femoral notch, including a patella recess, subsequent to establishing distal, anterior and chamfer surfaces at the distal femur. The instrument system includes a femoral notch cutting guide for placement over the distal, anterior and chamfer surfaces of the prepared distal femur, and a femoral notch cutting punch. The femoral notch cutting punch is engaged with a first guideway in the femoral notch cutting guide to remove natural bone from the intercondylar area and establish the patella recess, and subsequently is engaged with a second guideway in the femoral notch cutting guide, transverse to the first guideway, to remove natural bone from the intercondylar area and complete the femoral notch.