@MrWhoopee's solution, a woodcutting router bit should work, if you rough it first with a ball endmill so you're not taking more than a .005 or so cut. I'd certainly try that first.
Another option is to rough it out with a ball endmill. Then turn it up on its side so the long axis is aligned to the X-axis on your mill, and the open face is facing to side (not up like shown). Then use a fly cutter with a ground HSS form tool matching a section of the 1.125" curvature. You'd need to hand grind a few HSS form tools (depending on the width of the tool blank). You can flip your form tool over, run your mill in reverse, and do the other part of the radius (top vs bottom).