A simulation model of a punch grinding process has been used to determine optimal parameters to reduce grinding cycle time and achieve a constant-temperature no-burn situation. Two basic outputs of the simulation model include arc length of contact and specific material removal rate that are both time-variant. A thermal model is included in the simulation to calculate maximum grinding temperature rise. The simulation-based optimization can help to avoid thermal damage, which includes thermal softening, residual tensile stress, and rehardening burn. The grindability of high speed steel (HSS) is presented in terms of specific grinding energy versus undeformed chip thickness and maximum temperature rise versus specific material removal rate. It is shown that for a given specific material removal rate lower temperatures are achieved when grinding fast and shallow. Higher temperatures, characteristic for slow and deep grinding, soften the material leading to a lower specific grinding energy, especially if grinding is timid. Lowest values of specific grinding energy can be achieved in fast and shallow grinding at aggressive grinding conditions.