MCR,
As previously stated, cows milk is a good cutting lubricant, and try to get the full cream variety. It is something in the fat content that does the magic deed.
Tallow is the correct lube, but they are very difficult to catch at this time of year. Their legs fall off in the summer months, so they can't land until they grow back again, which is usually around Christmas time. Processed lard (shortening) is a good substitute.
I have had great success with both bullet tipped twist drills for the smaller holes, and Aldi 'special buy' cone drills for the larger stuff. Trepanning works for really big stuff.
You need that guiding centre to stop it jumping about and making those 'triangular' shaped holes.
Bogs