I have best luck doing what Mr. Kircsh does, drill the hole in several stages. If I have a 3/8 bolt that's broken, I would start with a 1/16 or 1/8 bit then go to 1/4 then go to 5/16 etc. For the final drill you want to be just under the minor diameter of the bolt. Hopefully, then you are left with just the bolt threads in the hole and you can remove them with a sharp pick.
For centering, a punch if it's something heavy or if not, such as your present case, I would use a ball end carbide burr in a die grinder and make a dimple as close to center as I can.
You can find good drill bits at an industrial supplier such as Enco. Hardware store bits can be as good but it depends on what the local store has in stock and you have to buy the better ones.
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