Some information I have found on this forum suggests that the pc's can be done in the head with a grinding machine but not with a milling machine.....
some sources say you can grind the INCONEL precups.. some say to flycut the bores..
me personally, i wouldnt make those precups any thinner than they already are.. and the fact that inconel work hardens, that gives it more of a chance to crack once there back in your engine, and being heat cycled..
im on the "flycut the bores" bandwagon, personally.. it makes more sense to me to have them stand a little bit proud of the head deck, so they clamp down on the head gasket better, and they are retained in there original position better, also..
we have come up with this theory, that if the precups are FLUSH with the head, being that inconel does not expand as much as aluminum, the aluminum expands more, and leaves the precups basically LOOSE in their bores.. no telling how much more the aluminum expands than inco, but if they are FLUSH @ whatever ambient temp they were ground at, then think of it, they will be RECESSED at operating temperature, and will be bouncing around, and eventually will break apart, and TRASH your engine..
this is what happened from FLUSH precups..

(yes Lucas, i stole your picture..)