So far, everybody else has offered brute-force sollutions. I'll bet this is
faster and easier. Center punch the center, draw a circle 7/64" smaller
than the finished hole, prick marks on this circle 1/8" apart, use an air
drill and 1/8" stub bits and drill these holes, knock-out the slug, clean-up
with a tapered reamer, finish with a sized reamer.