Step 1: 1) 0.25" rough 2) 0.125" finish. I didn’t have a flat 1/8" bit, so used a ballnose instead. Cleanup can be done with a chisel, and it won’t be seen with the inlay in place anyway.
Very nice. I also like to make things for shop using the SO3. I wish more people would post pictures like this. It inspires us.
Did you hand drill the missing hole? Did you figure out why it happened?