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Paint will of course be removed and cleaned.
You're going to have to go a bit further than that if you want a solution which lasts more than one ride. The headtube needs machining so that the two ends are fairly accurately cylindrical and coaxial, and sized to create the necessary press fit in the cups. This is relatively simple when dealing with the ID, since you just have to hold the head tube fairly close to coaxial with the mill spindle and run a boring head into it. Holding a finished frame in a way which allows you to perform similarly accurate finishing work on the OD is pretty challenging
Of course it completely depends on the frame. In the drawing it's 3mm, on my frame here I can go 5mm deep at the top and 3mm at the bottom. Paint will of course be removed and cleaned.