Wow, this is a deep one
I'd consider trying it with two 1" boring bars, using a CNMG insert, with one bar right hand, the other bar being left hand. You could also try a DNMG insert for more penetration per ramp.
With 5 degrees of side clearance, and having a maximum range of tool movement within the groove of 1.25", you could still ramp in almost .1" across that 1.25".
Take the cuts alternately with the two bars, each bar dedicated to one direction. You'll need a toolchange between each pass.
You can likely get decent chip control, which is a big headache with normal face grooving tools. However, you can likely be fairly aggressive with the feedrate on the boring bar. Coolant entry will be good too, because you can keep the groove open full width all the way down.
First you get good, then you get fast. Then grouchiness sets in.
(Note: The opinions expressed in this post are my own and are not necessarily those of CNCzone and its management)