I'd like someone to walk me through machining 1/8" off the top of a 3/4x3/4" lathe toolholder.
Surface grinder would be my first choice
Lathe insert holders are generally really hard, especially Iscar, Valenite, Kenna, Sandvik, etc. If using solid carbide tooling, run the largest 4-flute end mill that your machine will take - usually 3/4", but a 1" end mill is stronger if you have an ER-40 collet chuck. 200 sfpm is plenty fast. Set DOC and feed where they feel right & sound right for your machine ... this is not a really fast process. Although you can take all .125" off at one, a pair of passes at .0625" are easier on the machine & on the nerves.
An indexable face mill (or indexable end mill) is perfect for this use, as replacing a few chipped inserts is a lot cheaper than replacing a 3/4" or 1" solid carbide end mill. This is not the time to use a high shear or free cutting tool, but better to use an insert that is close to unbreakable. If you have a tool that runs CNMG's, they work well. As do most negative rake milling inserts.
My "go to" choice of inserts is a CNMG-432 or CNMG-433 in cermet. EBay was good to me a few years ago & provided 100 CNMG-432 made in USA cermets ... at the grand price of $50
If you don't have or cannot find cermets in the shape you need, an insert made to run tough materials can also work. Most of the lathe insert holders are at least 50 HrC, and tough as nails.
Some people have great success with solid carbide end mills, but it makes me cry when I break a $100 end mill of a $20 eBay holder :nana: