Now that I have refined the area around the eyes and the sockets are the proper depth I can glue the eyes in place. I put the eyes in and then put a few drops of super glue at the top of each eye. I let it run down behind the eyes and the eyes are now glued in place. I then use the wood putty to form the area around the eyes and the lids. I work one eye until I get the look I want then let it dry. Once dry I work the other eye to get it to look the same as the first.

Here you can see the eyes are glued in place. The darker area above the eyes is the super glue.

In this picture I have applied a gob of the wood putty and will start working it to form the upper and lower eye lids.

This is the wood putty I use when setting the eyes. I get it a local building supply store. They do not carry the solvent or thinner anymore, but I have found acetone works just as good. One thing I have found with the putty is that the more you work it with the thinner the stronger it seems to get. I use a small medium stiff paint brush to work the putty and form the lids. I just dip the brush in the thinner and continue to move and work the putty until I get it where I want it. The biggest advantage, in my opinion, to using this putty is even after a few days I can still make adjustments if needed on the eyes. Also if I happen to damage an eye and need to replace it removal is easy, just keep the eyes area wet with thinner until the putty softens enough to pop the eye out. Again maybe not the right way or the best way, but it's how I set the eyes.
  Next time, making the eye lids and getting the look I want for the carving.