Another trick, grind an inexpensive spade bit down to the size you need, it's easy to do and can be made to bore a precise diameter. You can also grind down the diameter of a Forstner bit.
The Trepanning cutterJohnG mentions will work great if you only have a couple of holes to do. You can also use an adjustable spade bit though that are kind of pricey. In all cases use a drill press, a spoil board below is always necessary, sometimes one above is a a good idea as well, if you need an absolutely clean hole.
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