The best way to take out those screws is indeed with a milling machine, but with a center/pilot drill, that doesn't have any flex.
I've done a couple for some folks that wanted to put them back into their sniper configuration.
Neither of them ever followed through on their projects.
I found that it was much easier to start the hole, in the screws, from inside the receiver, rather than try to find centers on the exterior.
Start the hole with the centering drill and later drill all the way through with a regular drill bit.
Once the holes are drilled all the way through, take the receiver out of the vice and set it up again so that you can clean up the weld, which isn't very deep. On the rifles I did, maybe .025 at most. Just enough to skim coat and file smooth.
Then, a bit of liquid wrench and a tap with a punch to loosen things up.
Fit a good quality "easy out" into the hole and carefully screw it out.
I do this with the receiver still clamped in the vice, on the milling machine, as I may have to use the center drill to cut a bit deeper.
So far I haven't had to do it. Very likely won't be doing another one.
The metric tap used by the Soviets and their satelites have a normal pitch.
The recievers are not especially hard, but the weld material on one of the rifles was hard enough to dull the tap.
Just like the center drilling on the screws, I started the tap from the inside of the receiver, where appx 85% of the threads are still intact.