Use carbide cutting tools. I got this advice many years ago and I have successfully CNC milled panelled coach sides with excellent finishes on edges and surfaces. Here's my thread for my 1:32 scale coaches.
One of these days I could have an operating layout in the garden and I'll need some coaches. For me, building coaches is a lengthy process so I thought I might make a start now so that there was a possible chance that something might be ready in time. :) I actually made a start last year...
www.westernthunder.co.uk
If you use HSS or carbon steel tooling, the heat generated during cutting causes the styrene to melt and deform, giving a poor finish. With the carbide tools, little heat is generated when cutting, probably because the carbide tools are much sharper, and the finish is excellent.
But I did find that I had to watch the speed of the cut. If your speed of cut gets too high, the styrene almost forms a bow wave in front of the cutter and your actual depth of cut deepens. So you can start to get grooves the width of the cutter on what should be flat surfaces.
Jim.