Drill or mill??

I will definitely try that. Any idea what the correct shape should be?
 
You need about 7° front clearance, and enough side clearance so the bottom of the carbide does not rub on the side. This is dependant on the diameter that you are cutting, but I always give it generous clearance. This is normally the biggest problem with the Chinese bars.

The angles are really not critical, there just needs to be clearance.
 
Get a green wheel (silicon carbide) for your bench grinder. Regular aluminum oxide wheels will wear away quickly on carbide.
 
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