I'm not a beginner, but this seems to me to be a topic that beginners should know as much about as possible – as soon as possible. Clearly, I didn't…
The complicating issue in this case is that the hole is in hardened steel (a moving vice jaw). The hole diameter is perhaps 2.5mm (haven't got the thing here to measure), is about 10mm deep, and is blind. Apparently, it got chewed up by attempts to remove a roll pin. The first few mm are certainly no longer cylindrical, perhaps .5mm oversize, but it's probably as manufactured, deeper down.
I have access to a not-particularly rigid mill (Emco FB2). I have been asked to 'make the hole round again', so a removable dowel can replace the roll pin. Its diameter doesn't matter too much – it could be 1mm oversize, but the centre position should be retained as well as can be managed. I'm thinking of using a drill bush to locate the hole and constrain the cutter, as it will be cutting off-centre, at least to begin with.
The first question is: what cutter, drill, burr, whatever, would be best? I have broken a few carbide twist drills, in the past, so am nervous about brittle, small-diameter cutters, particularly when cutting 'on the corners'.
…and the second question, the answer to which, had it been known earlier, would have saved all the trouble: how the hell are you supposed to get (small) roll pins out of blind holes?