If using a hinge bit in a handheld drill it is best to make a simple jig to position the bit, this can be a dit of scrap with the hole drilled right through, fix a batten to this to space the hole to your required edge spacing, clamp to wood and drill away making sure you keep the drill vertical. You can also use a drill press if you have one with a large table to support the door.
With a router you can either plunge cut with a suitable 35mm bit. you will need a similar jig and 40mm guide bush. or you can go round & round inside a suitable template with whatever bit/bush combination you have.
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