I need a 2 1/2 inch hole in a 1/4 inch thick plate (steel). I am trying to avoid paying a bunch of money for a hole saw that may or may not make it through the plate without dulling or going to the waterjet guy.

Any suggestions? I am seriously thinking about drilling about 50 1/8 inch holes in a circle and then filling down the rough spots. harbor Freight is having a sale on 1/8 inch drill bits.

Thank you