I'd just mill the slot with an end mill,and square up the end with a cape chisel. A cape chisel cuts a narrow slot. You can still find them these days,but in limited widths only,like 1/8" and 1/4". Old time machinists used them to cut keyways into shafts that were very difficult to remove,like shafts in complicated overhead line shafts,or on locomotives. It was not uncommon in those days for a decent machinist to be able to cut a keyway.
They also chipped away the crusty outer layer on rough cast lathe beds using had chisels(cold chisels). A good man was expected to chisel 6 feet of a Vee way in a day. Then,with the crust gone,more accurate scraping and filing of the lathe bed could begin. Must have been a truly hard,exhausting,miserable task. Something your body had to get used to. But,so many jobs were like that in the old days. Like sailors "Fisting canvas",curling up a huge sail in a storm,often when the canvas was frozen. And,standing on a "Footrope" high above the deck. One slip and you were either killed crashing to the deck,or overboard in a rough sea,never to be seen again.
This was in the early days of machining,when large planers and milling machines were few and far between. Today we do everything with machinery. Even hand scraping is becoming a thing of the past,except in re conditioning of machines by skilled operators.