What is the best way to drill a hole in the side of a teacup?
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Use a drill bit made for porcelain tile. I had a dozen cups and only one cracked. Set cup down on a 2 x 4 and put bottom down.
You need a wet surface before drilling and I use a diamond head drill bit. They're for glass and ceramic cutting and can be purchased at Home Depot. I made a tea cut bird feeder where you can see how I did this.
https://www.gardenupgreen.com/2018/05/tea-cup-trio-bird-feeder.html