Since you are doing this real time, I would think you would want the process automated as much as possible. Let me offer the following:
1) Acquire digital image
2) Import image into custom software
3) Select "slice" of image to be vectorized in custom software
4) Vectorize "slice" in custom software
5) Convert vectorized "slice" into tool path in custom software
6) Convert tool path into G-code in custom software
7) Output to
CNC machine
8) Execute output on
CNC machine and standby
This is based off of my imagining that you are using a digital image of say 768 pixels wide by 1024 pixels high. And I am imagining that each "slice" to be machined will equate to 768 pixels wide by 8 pixels high. For the first pass of machining, the "slice" of pixel rows 1 through 8 will be vectorized and then machined. Once digital image #2 is obtained, the second pass of machining will be the "slice" of pixel rows 9 through 17, and so on.
Am I getting close?
There are other ways to do this, some using currently available software. I am just using the above as example for a base line for further discussion.