A drilling system is disclosed. The drilling system includes a drill string and a drill tool coupled to the drill string. The drill tool includes a cylindrical body. The drill tool further includes a plurality of blades on exterior portions of the cylindrical body. Additionally, the drill tool includes an instrumented cutting element on one of the plurality of blades. The instrumented cutting element includes a cutting table and a substrate coupled to the cutting table. The substrate includes a cavity. The instrumented cutting element further includes a core in the cavity and an electrical connector coupled to the substrate. The instrumented cutting element further includes a coil wire coupled to the electrical connector and surrounding portions of the core. The coil wire is configured to generate a signal in response to the instrumented cutting element being proximate to a magnetizable material.