Mill large hole with small bit

I am creating cuts for T-nuts.I have used two circles. One as a pocket 1/2" with and 1/3 deep. Another circle cut thru and 1/4" wide. Then center them on top of each other. Is there a better way?

That is the best way I know of. The bad thing is that Easel will not cut a 1/4 hole with 1/4 bit. However they have released a drilling app that should drill 1/4 hole with 1/4 bit. I have not used it. It may not work well with the 1/2 pocket, that may have to be done on a separate work piece.