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Instead of buying an expensive bit that I will rarely use, I came up with the idea to create these holes
with a 1-1/2" drill bit and a 3/8" rabbet router bit that I already have. The steps below show how I expanded
my drill bit's capacity.
 1. Use 3/8" rabbet bit & 1-1/2" frostner
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2. Drill the template
3. Route 2-1/4" hole with the template
4. Here is the result
Drilling Thick Stocks
The above method works for thin stock (no thicker than the thickness of your rabbet bit.). For thicker stocks, I add pattern or flush trim bit as shown in the steps below.
1. Set the rabbet bit just below the template and route
2. Use flush trim bit to clean up the rest
3. Here is the result