It's a non-drying oily paste. It's important that it be non-drying, so it can transfer from one surface to another.
It should be something that wipes off with alcohol. (so you can do the high-spot procedure several times in a row)
Local auto parts stores sometimes stock Permatex Prussian Blue. (AutoZone doesn't even have it in their inventory, and O'Reilly rarely carries it. Try NAPA?)
layout blue AKA DykemTM blue — This is not the same as engineer's blue. Used for layout marks. You first apply a thin coating (which does dry), and then scratch lines away from that coating. [2]
surface plate — Super flat. Used to reference other surfaces against.