On a mill with a end mill bit. The blade is mounted at an angle and a cut made until you get the width you are looking for. A smaller diameter will give a deeper cut so you need to look at how thick your blade is and how wide you want the nick to decide what diameter bit to use. I would think a 1.5" diameter bit would be about right.
The shop talk section will get you a better answer to what is a good size bit and someone might even be able to put up a picture of how the blade is positioned while making the cut.
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