Mild steel is perfectly adequate as it not under heavy strain. You can sneak it down to 1 inch or 25mm max diameter to avoid getting a large bar. In fact you could use aluminium with steel pins instead of filing down the two teeth and that sloping bit is just decorative so can just be a straight bit as it is only for clearance, and I'm not sure even that is necessary. edit: just checked the slope bit adds clearance for when using a large changewheel but it can just be a squared off bit at reduced diameter
Your difficult bit is the keyway but it doesn't have to be super precision on this part, in fact you want a loose fit to slide well. One way to make it is to make a plug that fits the hole, saw it lengthways part way through with a junior hacksaw to the full depth of the blade. You can fit this to the hole with the saw blade in it and it will guide the daw down. Move it round a bit and saw again to widen the slit repeating until the slit is a slot. Then finish off with a needle file.
on the original the keyway goes down the middle of one of the dog teeth. This is not necessary and would be more likely to mess up by breaking trough one edge.
Edited By Bazyle on 04/03/2017 09:23:03