Hello Kenneth,
Cut cast iron dry, there is more that enough carbon content to provide any lubrication needs. Get under the skin of the material with a decent degree of feed, use a modest speed, not necessarily low back gear either, and then turn the waste of within the capacity of the machine to cope with comfortably. I have found a sharp pointed tool will tear off the waste much more satisfactorily than a tool with a broad face, those can chatter.
Scratching about on the surface makes dust, wears the cutting edge on the tool and leaves a poor finish
Swarf in the chuck is inevitable, as soon as you are done take it completely to pieces and clean it scrupulously.
The super finish comes at the end stages using light cuts having roughed the thing to shape, a little polishing with a scotchbrite pad will remove the final rough edges and leave a nice surface.
A magnet will just turn into a ball of dust I'm afraid and leave everything it shouldn't magnetic when it is taken away; it will have no useful effect really
Regards
Brian