BigBill said: Don't cut it!!!!
Those small plantlets are called keikies, which means baby. Once it has several roots between 2-3" long, it can be removed from the mother plant.
Just use the back edge of a butter knife as a wedge between the bigger cane and the baby. With just the right pressure, it should pop right off.
It is from a Dendrobium phalaenopsis orchid. You can pot it up using the proper sized pot and the appropriate media. Quite probably a three inch clay pot would work nicely.
BigBill said: The best place is right where the baby plant is attached to the mother plant. If you do it, no cutting is involved. There is no reason to cut. If you cut, you are creating a possible source of disease or a rot to enter and possibly kill the plant. Why do that.
Trust me, the butter knife works very well.
Almost every root should go with the baby plant.
Does this orchid bloom every year for you?
BigBill said: Then I assume that it will do just fine going forward.
BigBill said: Yes, you could do that but you are risking water and root damage. The mature plant likes such and such. The baby likes similar overall care but not the same watering schedule.