The balusters run through the support piece and are screwed to the end pieces of the panel. Those are then screwed into the posts. I don't like wood sitting on wood, sort of begs for rot so I put rubber "feet" on the midline supports.
The cap rail is attached to a baluster piece and then sits in notches in the panel support pieces
They are held down with screws through the panel ends that go into the 2x2 under the cap rail. No screws going into the top of the cap rail to trap water and create rot.
Yep, cedar. Spendy (only used clear for the cap rail and the midline supports though) but less likely to rot, no nasty PT splinters and it doesn't warp like PT.
I've got to do something with the porch here at the house, but need to stretch a couple more yrs out of this PT that is here. I'm thinking of renting a drum sander and sanding it down, then sealing it with something or staining it. I was thinking of replacing the warped railings, too.