This work presents a practical approach to the control of tool's position, in orthogonal cutting, in the presence nonlinear dynamic cutting forces and machine tool dynamics. The controller is Linear Quadratic Gaussian (LQG) type constructed from an augmented model of machine tool realization, tool-actuator dynamics, and a nonlinear dynamic model relating tool displacement to cutting forces. The latter model is obtained using black-box system identification of experimental orthogonal cutting data in which tool displacement is the input and cutting force is the output. The controller is evaluated and its performance is demonstrated.