Hand grinding a flat bottom drill.

you made it center cutting, that's hard to do. I have done several for countersinking socket head cap screws after drilling the through hole for the screw. that is a piece of cake.
 
I've made many custom counterbores in this fashion over the years, the smallest being for a #2 socket head cap screw.

One piece of advice when using them; is to pre-drill the hole with a standard drill to prevent the counterbore from wandering.
 
And keeping it as short as you can, again to keep it from wandering.
 
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