Before you start enlarging holes: one potential issue is the mounting hole in your QCTP. You might need to either drill that out (if that's possible) or make/buy something that's compatible with the size of bolt or stud you use......Even my little 7x12 uses an M10 bolt for the toolpost mount. If you've got a drill press you should be good to go (assuming you've got the right drill and an M10 tap). You can chuck a smaller but close-fitting drill in the drill press to align the top slide -- drop the chucked-up drill in the hole. Once aligned clamp it down, switch to the drill you need for your M10 threaded hole and go for it.
Feed slow when enlarging a hole drilled in cast iron. It tends to pull drills into pre-drilled holes. Also, you need to keep in mind that you can get both M10-1 and M10-1.5 bolts. They will require slightly different-sized holes for tapping.
This is the way I would do it. In fact, I did a similar job by buying a used (but good) tap. Be really careful. You will only get one chance. Not really...if you mess up, you can do the compound replacement with a solid block trick. That will work in case you goof up. I would not attack it with a welder, even though I know how to weld cast iron. Wrong application of a tool.If you have a mill, it would help make sure you drill/tap straight. Or a drill press? I would remove the top of the compound to do the job so you don't get chips in the sliding surfaces. My compound (PM1127) came with an M10 hold down. I wouldn't want to go smaller than that. I made a new stud as well, that has a wider section in the middle. So it can tighten against the compound top to ensure everything is good before installing the QCTP. For now, just use a bolt or bit of all-thread to hold the QCTP so you can make a new stud or whatever as needed.
Understand - I plan on enlarging the hole to 5/8'' ID and threading the bottom of the new stud to fit that, and then turning down the body of the stud to fit the 9/16'' +/- hole in my QCTP... Just hope this rookie is up to this task.Before you start enlarging holes: one potential issue is the mounting hole in your QCTP. You might need to either drill that out (if that's possible) or make/buy something that's compatible with the size of bolt or stud you use......
I am not capable of running single point threading.... My threading dies are all I have at this point.Thread wires are cheap. You can use a mic or even a caliper to measure them. But this is a one time thing really. So if you don't want to get them, get as close as you can.
When you say HSS threading set... Tap/die set? They should cut close enough. I thought you were going to single point the threads as you were using a lathe, but a die would work. It might be tough to run on, most of the sets you get locally are really intended for repair not cutting new threads. They can do it though. Or get close with single point and run the repair die over it.