t-molding.com will be happy to sell you a 5/64" slot cutter in addition to any T-molding you happen to need. Your 1/16th inch cutter will be way to tight for molding that requires a 5/64" slot.
Personally, I wouldn't use 1/2" MDF for anything. Then again, I wouldn't use MDF for anything. In my area, 5/8th inch material is hard to come by so my tendency would be to use 3/4". My stock suggestion is to use plywood or MDO in preference to MDF.