Round in Circles, not sure if I'm understanding correctly, but if I am, you can grind the 1/2 " tool so that it will go straight in like a boring bar. If you cut the little parting tool at the front perfectly perpendicular to the tool bit then, just be sure that the tool is parallel with lathe axis, and the groove will have a 90 deg. face. See my sketch, hope this helps, JR49
View attachment 109133
EDIT, if you have a boring bar that holds a 1/4" or smaller bit at 90* to the bar, you can use that and have less grinding. good luck