Several points there.
– Chip Evacuation. Really two options which are washing it away with flood coolant as Julie uses but you need really a full enclosure, etc. The other option that I use is to blow it away, if you look at most of my videos you will see the LocLine which as a 4mm OD tube inside and then a 1mm OD brass end which ups the velocity so you don’t need much air or pressure which means a smaller quieter compressor can be used. I have it set to keep the area around the cutter clear not the whole table so it does not blast the swarf all over the place.
– Lubrication. On small aluminium jobs I will brush on a bit of paraffin but larger ones I add the lube to the air otherwise I cut dry. One problem with just adding an oily neat lube is that it is sticky and will be counter productive when it comes to getting rid of swarf as it will make the chips stick in the slot and to the tool and you then start recutting them which is not good
– Cooling. Adding small amounts by brush will not really do much to cool the job or tool, as you have found it just cooks the oil or if using soluable oil will turn the water content to steam ready to condense out on other cold metal surfaces in the workshop.
– So in your case I would say if you keep the lubrication to a minimum applied with the air or just use the air it would do the job.
I don’t tend to do that much cutting out from sheet and have still not found he ideal approach but generally the feed needs to be less than when you are just using teh side of the cutter this is due to zero chip thinning. Don’t use too small a cutter and slow the ramp feedrate which combined with triangular tabs won’t see the tool plunging quickly down after each tab. Do a final finish pass at full depth which should eliminate any marks left as the tool steps down and also give a more accurate part as the tool is not being pulled sideways by the full width cuts.
Starters for 10 say a 3-flute carbide cutter at 4mm dia. 5000rpm. Do it in 4 passes a little over 1/64th each with a final clean up at just over the full 1/8″ thickness. Feed less than you would for side cutting, try 300mm/min
This is mild steel with similar parameters as above, just air to clear the chips