I know the tool you need;More work on the Onan opposed twin half scale engine. I have reached the point where I can start on the cylinder sleeves but need to be sure I can fit a friends steam engine pistons and rings into the available cast iron bar and still have enough for my two sleeves. Made up a tool to get the cylinder directly under the mill head. Picture 1 & 2 measuring tool, accuracy questionable, 3 upsiddown parting a steam engine piston, 4 turning off the rings with a tungsten carbide saw tooth.
https://www.ebay.com.au/itm/Coaxial...m1c46cb977f:g:uvAAAOSwRNpdUzQi&frcectupt=trueBut $93AU does not grow on trees (and there's probably a VAT, that is not shown on my computer screen).
Is making a cylindrical disk that is maybe .01mm smaller then your bore, with a flange to prevent it dropping down in the bore hole, with a small drill hole through the center, the intent to located the center of this cast iron sleeve material source, then use a pointed edge finder to locate under your mill spindle center a method you've thought of to get real close? (sorry for the runon sentence).