Drill bits and cutting elements having a functionally-engineered surface comprise a cermet material selected from the group consisting of refractory metal carbides, nitrides, borides, carbonitrides and mixtures thereof. A functionally-engineered material is disposed over a surface portion one of the cutting elements to form a wear resistant surface thereon having a hardness that is different than that of the underlying cutting element. The wear resistant surface is provided by forming a conformable material mixture by combining one or more powders selected from the group consisting of cermets, carbides, borides, nitrides, carbonitrides, refractory metals, diamond particles, cubic boron nitride particles, Co, Fe, Ni, and combinations thereof, with an applying agent. The applied material mixture is pressurized under conditions of elevated temperature to consolidate and sinter the material mixture, thereby forming the wear resistant surface having desired properties of hardness and/or fracture toughness.