Having a hard time extrude cut groove on a curved surface

I have this part that has virtually no flat surface on it. I am able to modify it to my needs up until i have to create a groove cut of 1mm wide and 1mm deep (see Capture 2). Im able to create the sketch and use the projected curve sketch but when i try to extrude cut, it cuts the entire sketch instead of just the groove (see Capture). What am I doing wrong? Is there another approach to this?

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