In this work, a single-stage, blown powder laser cladding process was used to deposit a protective layer of Ni-based alloy Inconel 617 on mild steel substrates. A Design of Experiments methodology is used to analyse the effects of the major laser cladding processing parameters on the deposited layer characteristics. Layer thickness, microstructure, dilution, and corrosion resistance are analysed and correlated with the processing parameters and the overall effectiveness of the protective coating assessed. The work is unique in that the protective material, usually clad in the form of costly powder, is in this case virtually cost-free and simply recycled from machining waste without any costly atomisation or similar process. The method has clear potential for material-efficient and cost-effective corrosion protection.