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@Dutch_Cheese
Start drilling 5mm or 6mm diam.
There are bits, fairly cheap, conical, that you can turn into the drilled hole with left turns. (EDIT: just learned that you guys call it an easy-out ;-) )
Once they get grip, they more or less "eat" into the bolt and loosen it.
The bolt is gone anyway. The conical bit may do the job only once.
What you need for the rest is a new bolt for your stem. And don't forget to put grease on all surfaces.