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I will suggest a few tools and you can look into them.
1. Standard drill press. These are good for drilling holes and you can also notch by drilling you piece at angles carefully.
2. You can find Combo Lathe/Mill machines for fairly cheap. These will be great for drilling and shaping precisely.
3. Belt sanders are great for shaping and finishing knives. Belt sanders range from 2″-4″ wide with grits ranging from micro fine through extra coarse.
Please let me know how it works out!