You will need to re-draw the cup portion of the image in vector tools and use a font to represent the letters. For the font, there are web sites such as whatthefont.com that can help you determine just what font it is.
This can be done in Photoshop or Illustrator, using an upsampled version of your original image as a base layer serving as a guide. Once you have it in shape/vector form, you can resize it to your needs without degradation.
For someone experienced with paths and vector tools this would be a job of 30 minutes or less.
-Noel