A bearing steel of a 62 HRC hardness was milled using the cutting tools with different flank wears. The low-frequency measurements of the magnetic Barkhausen noise were performed under a controllable waveform of the surface magnetic field measured by the Hall sensors. The high-frequency measurements with a smaller magnetization depth were performed by a commercial Rollscan device. The measurements were conducted in two perpendicular magnetization directions: along the feeding and the rotation directions of the cutting shaft. Suitable magnetic parameters for detection of the induced surface damage were proposed.