If you want a round hole then believe it or not hole saws work well. Just make sure it's brand new and sharp and don't force it. I always reinforce the inside with a veneer first. I drill a hole (use the same size bit if using a hole saw) and then use that LMI Friendly Plastic to make a caul the exact shape of the side. Drill through that then clamp up the veneer with a bolt or some such method.
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