go S L O W, no hammer drill, solid flat support under the tile that has some natural damping (wood is good), let the bit do the work - don't push on the drill, wash the cutter in water.
For water, one technique that works nicely is to set up a shallow pan, put in a hunk of flat thick plywood (3/4"), set tile on top, pour in water until it covers the top of the tile and start drilling.
I'd cut the tile before install - chipping out a broken tile is a bear once thinsetted in. Thinset is awesome sticky stuff and does not want to let go of the tile or the substrate once cured!