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another way
If you have a router and router table you can put a piece of 1/4" laun over the table plunge the bit thru it, then fasten a piece of 3/4" ply with a hole in it bigger than the plug. Size of hole would be 2 x plug diameter minus bit radius minus whatever flat you want at the edge of the recess. Clamp the plug with a wooden handscrew for safety and hold it against the side of the 3/4" ply to start.
Pete
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