Devinchi,
You should get as big a drill as you dare.
Say 2.25" (if you have the power and drill chuck for the tail stock to hold it.)
If not get as big a one as you can handle.
Then after you have the hole drilled, you will need a boring bar.
For 3.00 depth you will need at least a .750 diameter bar.
1.00 diameter bar would be better.
Again I don't know what size tool you can mount on your cross slide.
But normally 4 time the bar diameter is all you want hanging out, for steel bars. For heavy metal 6 time is OK. And Carbide bars up to 8 times. I'm talking about the bar material itself, not the insert. It's a stiffness thing and harmonics also.
Make sure that your drilled hole is big enough so you bar can make the first pass. You will see the "min. bore" listed for the bar you choose. Your drilled hole has to be at least that big, plus a little, say .030 more. That way you can move the tool away from the bore to retract the tool.
Then it is just a matter of taking passes with the bar to get it to size. Speed and feed and depth of cut will depend on power, bar over hang, bar diameter, Insert tip radius, (use a .016 or less, IE: almost sharp).