Very carefully....probably with 45 degree end mill.
You've seen this on custom V-twin engines -- they just build that into the CNC code when they design the jugs. They're machined from a huge chunk of billet, so it's just another step in the finish.
I imagine it's much harder to do after the fact. If you're wanting to do this on a SOHC4 motor, you'd need to spend some time laying this out on the cylinders and heads. Figure out a width for the grooves that won't have any "remainders" over the length of one side. Also , watch for voids in the cooling fin castings -- this may be the biggest problem. I'm not sure how good the die casting process was 30 yrs ago.
It would sure look nice all polished up though, good luck!