In manufacturing an embedded magnetic component, a cavity is formed in an insulating substrate with one or more channels connecting the cavity to an exterior of the component. The channels include one or more obstruction sections that define a sealed base area of the cavity into which adhesive is dispensed to secure the magnetic core in the cavity. The obstruction sections prevent egress of the adhesive before it hardens. The cavity and the magnetic core are then covered with a first insulating layer. Through holes are formed through the first insulating layer and the insulating substrate, and plated up to form conductive vias. Metallic traces are added to the exterior surfaces of the first insulating layer and the insulating substrate to form upper and lower winding layers. The metallic traces and the conductive vias form the windings for an embedded magnetic component, such as a transformer or an inductor.