Given the low cost of Chinese tool holders nowadays you really have to consider if making one in a standard configuration is worth the time and cost. Most of these cheap holders work fine on most QCTP. I just bought 6 Shars #1 holders on ebay for less than $12.00 each and they fit fine, hold tools fine and I didn't have to cut a single one! However, there are times when you need a special holder, like a decent boring bar holder or a parting tool holder, that would be worth the time and cost to make.
Of course, a HSS cutter will not last long if it is used to enlarge an existing holder that is hardened by the maker, especially an Aloris or Dorian holder that is actually hardened properly. For a mild steel or aluminum holder that will only see hobby shop use a HSS cutter should work well and do a decent amount of work so I wouldn't give up on the idea just yet if you have a specialty holder in mind.
Mikey nailed it. I build lots of holders but they are special purpose, with CDCO selling them for next to nothing, the standard size ones are a waste to build yourself. I build them with small tool slots so I can use 1/4" and 3/8" tools in CXA holders and also hold really small form tools. For these I have given up on steel and use scrap 6061 or 7000 series aluminum. When using aluminum I machine them for a very tight fit figuring they will wear a bit with time. Some of mine are now 12 years old and have no noticeable wear.
You can make a flycutter type tool with a positive rake triangle insert , does not cut as nice as a 8 tooth cutter but sure is cheap.
michael