Here are a few articles/info I was able to find about propagating the offsets from a sago palm.

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"Can I remove the babies on my Sago Palm?"
Yes. It is best not to remove the basal suckers until they are at least 10 to 15 cm in diameter. We recommend removing most or all of the leaves. Clean equipment must be used. The sucker is removed at its base, without scaring or damaging the mother trunk. This is best done with a somewhat curved saw blade or a sharp chisel. Protect the mother trunk by moving dirt away from the point of attachment and letting it callus over for a few weeks after removal of the offset. Many people will treat the cut surface of both the offset and mother plant with a fungicide and some type of sealing material such as tar or wax. The removed offset can also be treated with growth stimulants. It should be place in the shade in a rapidly draining mix. We prefer to use pumice (ground lava foam), although people often use sand, perlite, or other materials. Water just to keep the pumice slightly damp. Avoid watering the offset; rather water the soil. The pup should root out and leaf within six to twelve months. Failure will be discovered if the offset collapses or becomes very soft on squeezing. Once rooted and leafed, gradually move the young plant can be repotted into a regular cycad soil and moved into brighter light. A greenhouse environment may speed up this propagation process. Bottom heat is usually not necessary, but can be used.

http://junglemusic.net/cycadadvice/cycad-establish-caudex.htm

http://www.rhapisgardens.com/sagos/sagopups.htm

http://www.texasriviera.com/summer2001/Fall_2001/Cycas_pups.html

Thanks for the links, I had read through them, however none tell me if it is ok to cut through the root mass around the pups to remove them. This particular sago has not been repotted for many years (How I purchased it) it's basically a ball of roots including 15 pups that are popping out of the soil (Not at the base like in the pics in the other URLs) I have now transplanted it to a larger pot (Will plant into the ground when pups are removed)

To remove soil I sprayed water and used an air gun, but still no room to get in and make the cuts without having to remove a substantial ammount of the surrounding smaller roots. The larger pups have 10mm thick roots around them, most smaller pups have around 3mm-5mm roots in a tangled mess around them.

I'm at a dead end unfortunatley.

Anyone else had a similar problem???

Cycadjungle has answered my query on another post. Cheers!

I have 2 large sago with seed pod growing in the middle about 15 inches long. What do I do with them, cut them or break them off. will it damage the tree.