Many years ago, I had the gear cutter bug myself, and came up with a hydraulic relieving attachment for use on a larger, heavier lathe ( a 19" Summit). The setup consisted of an 8 lobed cam wheel, about 8" diameter, which was affixed to a 1" mandrel. The cutter blank was mounted on the other end of this mandrel.
Then the whole thing was set up in the lathe chuck, using the tailstock to support the outer end. On the lathe bed, I had a short stroke hydraulic cylinder beneath the 8 lobed camwheel. From that cylinder I ran a hose to a small slave cylinder that I had built to mount in the toolpost. The slave cylinder simply had a square hole Sturdy sleeve inserted into the end of its shaft, out of which, the toolbit projected.
Now running the lathe at low speed, the 8 lobed cam wheel thumped along over top of the master cylinder beneath, producing 8 strokes per rev. The spring loaded slave cylinder in the toolpost pulsed out in unison with the impulse from the master, and the spring inside the slave forced the master to stay in contact with the cam wheel.
So then the trick was shaping the toothform on the cutter blank, using a template. The profile was truly form relieved. I always worked with a round cutter disk blank, and then cut the tooth faces afterwards, because I could then mill away the most imperfect part of the soft cutter where the tool was doing the retracting.
I would think this could be done very very nicely on a cnc lathe, but I've never seen one with a cycle that would properly automate the slide motion in step with spindle rotation.
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)