A system for 20 and method of (300, Fig 6) automated formation of a preparation stub, based on an a priori created computational geometrical model and configured to conform to a prefabricated fixed dental prosthesis, includes a digital imaging facility 22 with an image acquiring device 24 and a three-dimensional data digitizer 26, a modeling facility 30 with an exterior surface design module 32 and an interior surface design module 34, a fabrication facility 40 operatively with a computer-aided manufacturing (CAM) module 42, as well as an application facility 50 including an ablation tool (204, Fig 5) and in-situ preparation module 54. In one embodiment the application facility includes an intra-oral feed-backing appliance 203 for automated feedback-controlled formation of the stub and in a second embodiment the stub formed during the process has an external surface (18, Fig 2) which is configured to conform with the interior surface (19, Fig 2) of the prefabricated prosthesis.