Drilling Granite counter top

I am planning to install a dispenser for Brandy in our kitchen. The spigot will be a very typical sink-type spigot from HD or Lowe's that mounts through the counter top with a 1/2" hole. I have the normal graduated carbide bit selection as well as a DeWalt Hammer Drill. However, I've never drilled granite before and would appreciate any tips.
For instance, when the installers did the sink fixtures, they used an abrasive diamond hole saw and a sloppy sponge for cooling. Should I use water to cool the carbide bit? Should I invest in the abrasive hole saw? Do I risk cracking the counter top if I use the hammer drill function, or should I go with the drill function and lots of pressure and patience? Is it necessary to drill a small pilot if using the carbide bit, or can I "go for the gold" in one shot?
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Nonny

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Yes, there's a good chance you'll crack the granite

Use a diamond abrasive bit and take your time with it.
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Diamond core-bore in a grinder. Use one designed to run dry. Use a guide as there is no pilot drill. NEVER use carbide or hammer function.
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Nonny wrote:

The guide could be something as simple as the same size hole drilled through a 2x4 and then slip the hole saw in that and start your cut, once your into the granite you can nix the guide. Never use the hammer function on granite or tile...
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Drill only don't hammer-drill.
Use pool or flowing water coolant.
You can take plumbers putty and create a dam around the area - allowing plenty of water to keep it cool.
Rock is always cut with water - it will fracture and you will not like the zip run across the sink top!
If you can get a small water pump - think water feature for house - palm size - and use it to pump into the pool and have an overflow that goes into the sink or pot.
You want to keep as much dust out of the hole so the dust won't grind away the drill and waller out the hole.
Martin
Nonny wrote:

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I've done it with one of these: http://www.harborfreight.com/cpi/ctaf/displayitem.taf?Itemnumber2400 Use some water for cooling.
-Bruce
On Thu, 19 Nov 2009 22:58:58 -0700, Nonny wrote

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Nonny wrote:

You need liberal amounts of water and a diamond abrasive drill
When we do this we create a putty dam about 3 inches high and a foot diameter and fill it full of water .
The granite will crack if you dont
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Thanks to everyone for the information. My pump arrived this AM, so I'll make a run to our Harbor Freight store and see what they have in diamond abrasive bits, as recommended in the URL. I'm now considering an optional wall-type dispenser that won't require drilling the granite counter top. I'm particularly concerned about the location of where I'd mount the spigot, since it's near a corner and having tile and marble experience, I KNOW that's an area frought with danger, anyway. My alternative would be a "box" that would wall mount and the spigot would be on the top, giving me more height as well.
Again, thanks for reaffirming just how many good people hang out here and what a broad range of knowledge and advice is present.
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Nonny wrote:

I did a kitchen last year where I ended up having to drill holes in the granite counter top to permanently secure (epoxy did not work)the "wooden rack/shelf" to the kitchen desk you see in the left foreground in this picture:
http://www.e-woodshop.net/images/3811kit-11.jpg
The diamond bits were expensive but it was not a tough job, although it was a bit too close to the edge for comfort. We used water, but no more than a couple of cups, a bit at a time, while drilling the four 1/2" holes, and the one 1" hole (to allow the client EZ access to the receptacle under the counter for her laptop).
I did, however, breathe a sigh of relief after it was done ...
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