Cut the faucet holes in our counter tops with a diamond hole saw and water from a squeeze bottle. I'm not sure you would want the grit from the granite on your mill. Could raise havoc with the bed ways if any gets in there.
I was planning on using water as coolant with a diamond core drill and vacuum the grit right as it comes off.
That might work, but if the granite is big enough, you won't need coolant (it's a heat sink). Just go slow, and work the vacuum
nozzle around the cut. I'd prefer a drill press (easier to clean after). Better still, an ultrasound drill (it just pecks up-and-down
very fast).
A 'core drill' is like a holesaw? So it's gonna be a wide through hole?
In my experience with concrete, as in slabs on grade, formed stem wall/foundations, or grout into block, the vibration applied is CRITICAL to the strength of the final product. This strength relates to tensile, or compressive. How it relates to the OP issue, I do not know. Sorry for the intrusion. Please, carry on.including a vibrating table for removing air from the granite mixture.