A straight round nosed tool, probably ground with a little extra clearance to its left hand side, mounted pointing towards the face to be machined, will be better for this job as there will be no need to change tools and no risk of creating a step at the meeting point of the two cuts suggested.
You are not limited to bought pre-formed tools. I acquired a set second hand with my first lathe years ago, and have never bought any more. I always use HSS square section tool bits, and very recently a couple of indexable carbide tip tools. Any form-tool shape you require can be ground from an HSS tool bit.
The milling option is, well, lets say, perfectly possible.