The paper presents a new complete approach for Tool Condition Monitoring (TCM) in milling. The aim is the early detection of small damages so that catastrophic tool failures are prevented. A versatile in-process monitoring system is introduced for reliability concerns. The tool condition is determined by estimates of the radial eccentricity of the teeth. An adequate criterion is proposed combining mechanical model of milling and angular approach. Then, a new solution is proposed for the estimate of cutting force using eddy current sensors implemented close to spindle nose. Signals are analysed in the angular domain, notably by synchronous averaging technique. Phase shifts induced by changes of machining direction are compensated. Results are compared with cutting forces measured with a dynamometer table. The proposed method is implemented in an industrial case of pocket machining operation. One of the cutting edges has been slightly damaged during the machining, as shown by a direct measurement of the tool. A control chart is established with the estimates of cutter eccentricity obtained during the machining from the eddy current sensors signals. Efficiency and reliability of the method is demonstrated by a successful detection of the damage.