Cylinder twist cut

I have a Ø.625in rod that I want to cut want to cut with a Ø.125in cylinder.

The cut has to be perpendicular to the axis, rotate 90° about the axis and move .125in along the axis.

Attached is a part similar to what I need but I would like a smooth surface.

I've tried sweeps and lofts...I've tried projected curves and helixes.

Any help from any of the REAL GURUS OF MODELING would be greatly appreciated.

SolidworksParts And Features