eastwood sells a 1.25 hole punch for 21.99. I used it on my face plate for outlet box and worked fine. I have not tried it on stainless. If you want, I could try it on spare piece of metal from my cabinet, if it goes through that, it should work on the stainless wall of a keggle.
if you are in the philly area, you are welcome to come borrow my hole saws or green lee bits or cut it at my place. I just finished cutting my cabinet, so I got all the stuff here.