If it was a chilled iron casting, you'd probably be stuck resharpening your tool often, no matter what.
You could have made a split clamp that went around the nosepiece of the spindle cartridge. That way, you'd not have been brinelling the spindle bearings.
I'd question the necessity to have square grooves. I'd think V grooves would probably work just as well. You could mill those with the corner of a decent size tool held in an angle milling head. Maybe even get some Greenleaf WG300 inserts that would cut that shit.
We had to lathe turn some chilled iron feed mill rolls one time in prep for regrooving. We did not make any headway until we discovered the WG300 inserts. We used a 1/2 round one. The roll was 12" diameter, 30 inches long. We set the feed at about .03" per rev, and 1600 sfm and let 'er rip. We stood in a shower storm of cast iron

We didn't realize the roll was tapered significantly until we heard the spindle loading up as the cut got deeper. The overloads tripped out on 25 hp about 3" from the end.
My gawd, those were some insert!