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As the automotive industry increasingly adopts Advanced High Strength Steel (AHSS) for the vehicle light-weighting and crashworthiness, the edge cracking significantly increases in stamping AHSS. Different lab-scale test methods such as the ISO standard hole-expansion test and the half specimen dome test are available to evaluate edge formability. However, none of these lab-scale testing methods emulates production conditions such as various shear clearances, part complexity, and shearing speed associated with the mechanical or hydraulic press operation. To address these limitations of the available testing methods, a new punching and stamping test was developed. This paper introduces the simulation and experimental approach in developing this unique testing method to design the peanut-shaped hole that is sensitive to edge cracking in stamping.