In this paper, the finite deformation theory and updated Lagrangian formulation were used to describe the oblique cutting process. Either the tool geometrical location condition or the strain energy density constant was combined with the twin node processing method to act as the chip separation criterion. An equation of three-dimensional tool face geometrical limitation was first established to inspect and correct the relation between the chip node and the tool face. And, a three-dimensional finite-difference heat transfer equation was derived. Based on this approach, tool advancement was achieved in displacement increment step by step from the initial tool contact with the workpiece till the formation of steady cutting force. In this case, a large deformation thermo-elastic-plastic finite element model for oblique cutting was established. The mild steel was used as the workpiece, the tool was P20 and the cutting speed was 274.8 mm/s in this article. The chip deformation process and temperature effect on the strain energy density, chip flow angle, cutting force and specific cutting energy were studied first. Finally, the integrity on machined workpiece surface was explored from the variation of residual stresses and temperature distribution on it after cutting. During the chip deformation process, the chip flow angle obtained by this simulation result was approximately equal to the tool inclination angle, which confirmed with the geometrical requirement of Stabler's criterion. Besides, the simulated specific cutting energy was compared with the experimental specific cutting energy value, the result of which was within acceptable range. It is obvious from the above findings that the model presented in this paper is consistent with the geometrical and mechanical requirements, which verifies the proposed model is acceptable.