Yes you certainly can. If you get a horizontal facing cutter it will work this way. But you will have a lot of fiddling about to raise the work up on packing pieces every time you want to take another cut.
The more common way of milling in the lathe is to invest in a vertical slide that bolts on to the cross slide and holds the workpiece, or a small vice. Milling is then done by an endmill held in the lathe chuck.
Yet another budget way around the problem is to make a fly cutter, basically a piece of square bar held in the four jaw chuck with a hole drilled in it to hold a lathe tool bit and a grub screw to hold the bit in place. Work is then clamped to the cross slide, or to an angle plate that is bolted to the cross slide and faced off using the makeshift cutter.
There is a book in the Workshop Practice series called something like Milling in the Lathe that might be of more help to you.
Don't forget too that if you just want to do flat facing work, the job is often best mounted on the face plate using clamps and or angle brackets (easily made from angle iron scraps) and turned in the conventional facing manner.