In shop, or in field?
The best ones use an abrasive belt that goes around the proper size roller to make the saddle.
There are jigs that use a hole saw and are powered by a drill. The problem here is running the hole saw slow enough, and stainless will make short life on the hole saw, even at the proper speed.
I have used the hole saw and a Bridgeport mill, I made a 5/8" arbor from a 5/8-18 bolt and nut.
You could use a roughing endmill of the proper diameter [these have teeth on them] in a milling machine.
One of my friends made a jig that held the tube on the compound of a lathe, He put a roughing endmill in the chuck. This would work with a hole saw too.