You can cut the entire thing down to the ground and then it will make babies (pups) that will come up and grow. It will take at least 2 or 3 years for the babies to start getting to a good size though. You cant cut a cycad down and have them grow back from where you cut it, it will only come back from the roots at that point.
Maybe you just need to buy a smaller species of cycad. Dioon edule are really beautiful cycads, you will defintiely be the only person on the block with one, however, they are about as cold tolerant as the Sago palm that you have now and will also grow to be a bit smaller (since their growth is so slow).
-Alex

Thanks for the quick reply. I just found this website today and I already love it.

Does the time of year matter, we don't get many cold days is south Louisiana, but we usually get 4-5 days of hard freezes.

The time of the year doesnt really matter for cutting it down, but I think late winter would be the best time right before your usual last frost. Usually cycads make a flush of growth in the spring, so you want to cut it back before that flush of growth so that way it can get some new growth.
Glad that you like this fourm. If you really like palms, you have a ton of options in your zone (your probably in a USDA zone 9a which is a great zone for growing some palms)!

Good luck
-Alex