If I had a mill, I'd use it. But what I have, is a Dremel and files, and layout tools--so that is what I use. A few thoughts:
1. Using a straight flute carbide cutter in the Dremel and working in from the back edge works fine. They last a long time on aluminum.
2. If you trust your layout work you can drill a series of holes first, reducing the amount of Dremel work considerably. You can also use a small held-held saw to join the holes and finish the roughout. (Think of a short piece of hacksaw blade with a wood grip.)
3. Paper patterns work great as an aid for laying out slots. If you use engineering graph paper it is even easier. (Onion-skin, fine grid)
4. If you are machining away and don't like how the part is ringing--add support clamps or damping. Clay works well for damping.
5. Don't try to handhold the part and the tool. That never works well, except for whittling sticks. And guys cut themselves all the time whittling sticks!
6. For fixturing, you can bolt the spinner to a machinist's knee (spinner tip to the knee) and then rotate and tip the knee on the mill bed. Fill with clay. Use undersized cutter so you are only cutting on one side at a time to reduce loads.
7. Don't fall into the trap of wanting a perfect fit of the blade to the spinner as I have. First, you will need extra clearance to insert the prop into the minimum contoured slot you just made. The more thickness in the blade root, the more gap will be left behind as it seats. On full-sized planes they screw on an additional "filler" piece between the back of the prop and the spinner backplate. Also, the "perfect" slot will look less perfect when you want to try another prop and it won't fit. Been there, too.
8. What is harder to do is slot, or open up the slots, on a plastic spinner. Just doesn't seem amenable to as many methods as aluminum.
9. Check balance when done, including backplate and bolt/nuts.
Dave