A method and tool for forming a hole in a bone. The method includes bringing a bone cutting tool extending along a longitudinal axis into engagement with a cortical portion of the bone. A distal portion of the bone cutting tool is passed into the cortical portion of the bone up to a first predetermined depth to form a first bore. The bone cutting tool is then driven in the axial direction to a second predetermined depth to form a keyway portion in the first bore with a cutting tooth of the bone cutting tool. The bone cutting tool is then rotated about the longitudinal axis to form a second bore in a cancellous portion of the bone. The first bore and the second bore have a shoulder extending therebetween. The bone cutting tool is removed from the hole formed by the first and second bores in the bone.