I'm sure this topic has been address countless times, but being a first timer at replacing a nut I would like to have an answer to my current conundrum. I won a jackson Kelly in a raffle a long time ago and the nut on this thing has always been crap. The high e string pings every time I tune up. I'm sure I should just take it to a tech/luthier, but this guitar is a cheapo and I want to make it a project guitar so I want to do most modding by myself. Anyways, when trying to remove the nut a significant amount of wood came with it so now I want to know what I can do about it. Should I try to shim it, make a new nut to fit it, or is it too far gone? I've attached a pic of how much wood got dislodged with the nut.

Any suggestions would be greatly appreciated

Ouch, some previous owner used too much of the wrong glue! Just fill it with wood filler or balsa and then paint over it.
Thanks I appreciate the advice, but do I need to glue the balsa wood to the bottom of the new nut?
You can cut a strip of balsa to fit the break and glue it into the break with wood glue. You’ll probably still need to fill gaps with wood filler. Don’t glue anything to the nut. Once the damage is repaired and has had a few days to dry you can glue the new nut in with one or two SMALL drops of wood glue. The point of the glue under the nut is just to keep the nut in place if you change all the strings at once, so use the least glue possible.

If you’re not used to working with wood and fillers you might want to have a luthier do it.
If you know how to properly set the height of the nut, do it. If not, take it to a luthier.

A lot of idiots just like to slap on a new nut because they think its the "more musical thing to do", then wonder why their gear plays like a can of ass and buzzes worse than a metal muff.

Its all meant to be within a certain spec to play properly. That's why tremolos go out of tune, frets buzz, and the action looks a whole inch off the board. Because a bunch of dummies say they can do it, and then whine every time they dive their Floyd and it doesn't return to pitch because someone told them that x setup of springs works best.

If you don't know what you're doing, take it to someone who does, and not your bandmates. A professional.
I'm always screwing with my rig. Muh chilluns:
Warmoth NRFR strat JB/Jazz
Mesa Boogie Royal Atlantic, Diezel 2x12
Turbo tuner, J Cantrell wah, Alesis 3630
Green Rhino, Wampler Velvet, Strymon ElCap/Lex, Phase 45