I took a bit for my air hammer and ground it a tapered square until I got to the size I needed. From there, I shouldered the bit at the size I needed. I got the work I wanted worked on drilled to the diameter that I wanted, then heated it bright red, almost yellow, then hit it with my air hammer with the bit. You may want to grind the bit slightly larger than the square on the bolt. The metal will shrink a little, so the hole may end up slightly smaller than what you want unless your bit is larger than the squared section of the bolt.