The pocket has to be an arc, a 1/2" cutter would make an oblong. The undersize cutter would be a bit tricky with a rotary table, but be doable.
Too bad the OP has no tool post grinder on hand, though that still might not be easy unless he has developed the second sight for cutter geometry. I think if one is able to hand grind a small internal groove boring bar, it would be no different to hand grind a similar D-bit milling cutter to the needed dimensions. Best done in a fixture, it will challenge your freehand skills, but should not be impossible. In this hobby, we often have to make a tool to make a tool. Or in this case, make a tool to make a tool to make loaded cartridges.