Looking for Method for Drilling Karambit Finger Hole

Hello everyone.
I'm just starting to get into knife making (been making aluminum training blades for a couple years now).
I am wondering what would be a good method for drilling out the finger hole for a Karambit knife.
The hole would be either 7/8" or 1" in diameter.
I've tried drilling with a stepped drill bit but found that it hasn't worked too well so far. (440c steel before heat treat).
Since I literally work in a room of my house, I don't have any large or elaborate set ups (yet).
Any and all advice would be greatly appreciated.
Thank you in advance.
 
Why isn't the step bit working? Are you using a cutting fluid?

Aside from that, I'd maybe try piloting the hole with something like a 5/16" bit and finishing with a 1" twist bit.
 
Thanks Andrew.
The step bit keeps seizing up.
I did use a 5/16" piloting hole thinking that was the problem.
Not using cutting fluid but spraying the work area with water in order to keep the bit cool.
 
I'd really recommend trying some cutting fluid then. The water just isn't going to do enough as you can probably see.
You need some extra lubrication afforded by the cutting fluid/oil as well.
 
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