Engraving

I would just take it back to the darn store and tell them you don't want it. Even if there is a no refund policy, I would talk to the manager and tell them that there was no tag indicating this and it was wrapped up and presented so you couldn't see it. Even if you could get it removed, it'd probably cost another $20 to do so, so you have to decide if it's worth it. I know Waterford is expensive, so it might be worth it to you, but I'd take it back!

I am an engraver and I there is no way to remove it.
I would take it back for a refund.

Return it to the store.
They did not sell it honestly.
Tell them that.

They should not be reselling 'personalized' items?

Or Google Search "can engraving be removed from crystal."

Removing the engraving, might cost you more than you paid for the item itself?

why not pretend that the initials are from a relative on your mother's side who
left it to you. Use it a lot so the story seems OK.

can you rtn it?

what is the engraving? if there is a cake on it, will anyone see it?

Updated

can you rtn it?

what is the engraving? if there is a cake on it, will anyone see it?

Ha ha I'd just keep it. If you actually liked the cake server, and weren't planning to give it to anyone, then keep it and use it. If you only bought it b/c it was a great deal on waterford... then, maybe not? I'm dying to know what the engraving said, I think it would make for a funny story. However, on principle, the store should give you money back, as someone said, they sold it dishonestly.
Depends if you want the hassle of return or demanding a partial refund or not. I'd skip the hassle if I liked it enough to look past the engraved stuff.

Is it that noticable?

I think it's a little funny myself. This is the stuff that happens to me.

I suggest you take it to an engraver and ask. Perhaps they could engrave something over the top of the prior engraving.