Recently, I need a 2 inch diameter hole in some 1/2 inch thick Aluminium.
Admittedly, it was done in the lathe with a 1.5 hp motor, at 90 rpm, but I used a 1.75 inch diameter hole saw. White Spirit or Neatcut as lubricant, and frequent withdrawal to clear the swarf.. The hole was then bored to size, with a CCMT0604 tip in 8mm dia boring tool. Cuts were 0.020" maximum, with final cuts being "spring cuts".
The holesaw may tax your 500 W motor, but many pistol drills had no larger a motor, years ago, and they drove holesaws. Don't force it, ( keep the cuts shallow) lubricate, and clear the swarf frequently. To arrive at finish size, even from 1.75 inches, took a little time, but a lot less than trying to take umpteen 0.020" cuts from 1/2".
Look at the work that has been produced on ML7s; apparently beyond its capabilities!
As the saying goes "Slowly, slowly catchee monkey" Most of us are on a hobby, not piecework!
Howard