I don't know of any tooling for a typical CNC 3 or 5 axis mills that can do that small of a feature. You may need to look into EDM but I doubt that would give you the surface finish you would need.
Cycle times are going to be highly dependent on each particular part being machined at that time. What depth of cut? What length of cut? How many total operations?
I would recommend that you go to your school's library and start looking for manufacturing engineering books. Sometimes you have to...
The term “machining center” describes almost any CNC milling and drilling machine that includes an automatic toolchanger and a table that clamps the workpiece in place.
I use PTFE on a daily basis including using it as seals. PTFE is typically only used as a seal for applications in chemical harsh environments due to its C-F bonds, and/or applications where the seal also needs to be a VERY good electrical insulator.
It should be pointed out that although it's possible it's likely to be a proper **** job without the right tools. It's like trying to do precision machining when all you have is a bandsaw and a ruler.