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the typical groove dimensions i use are .025 deep and no more than .050 wide. it should be done with a radiused tool, not a square tool with sharp 90 degree edges.
i would never make the groove as wide as the hole in the cam bearing since they are typically 1/4" (.250") wide. that's way too wide IMO

i would also wonder why you think you need to groove the cam, unless it's a Hemi, which should already be grooved.

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Dan, I have the cam grooved becuase it is easier than removing or having the cam bearing grooved The reason I suggest making the cam groove as wide as the hole in the cam is as you know no two shops make the cam bearing center exactly in the center of the cam boss in the block, so making the groove in the cam as wide as the hole in the camshaft allows oil pressure to the rockers if the cam bearing is not installed exactly in the center of the boss. Even if it is centered exactly doesn't mean the cam will have the oil hole in the cam center in the groove To the OP, make sure and limit the oil feed to your rockers, I would, and do, use a carb. jet around .040 to .080, your call on the size. More oil helps cool the valve springs, that(the bigger volume) is not really needed on a hydraulic or flat tappet cam so I would use the smaller size jets on them IHTHs, Dan, Have a Great Day